Is This Legal??

[Rob]

I am refinancing my home in New York and haved switched lenders. The first lender had an appraisal completed (which I have gotten a copy of) and now my new broker is asking me to have the appraisal recertified. The appraisal company charged the first lender $125 which I of course paid the lender for the appraisal. The appraisal company is now asking me to pay them (no personal check) the same $125 to recertify the appraisal.
Is this appropriate or allowed? All they are doing is changing the name of the lender on the report. The reprt was issued 12/15/01. If this is not legal, who should I turn to?

Thanks for any opinions you may offer,
Rob

 

[Ray Ohler]

What I'm not sure about is that you say you paid the lender (lender A) $125 for the appraisal; hmmm. $125 even if it WAS on a paper towel, it's still cheap (in MY opinion) unless the lender paid over and above that. Now, you're going to another lender (lender B). Whether or not its 100% completely necessary, the appraiser SHOULD get a signed release from the first lender. THEN, if it is a "full" appraisal with photo addendums, attachments, etc. which USUALLY have the lender's name (in this instance lender A's) all over the attachments, the appraiser has to change the name/names and print out the report (including photos - maybe digital, if not, get reprints and mount) then pay postage OR spend time hand delivering the report. Sorry, worth AT LEAST another $125 to me. Short story - I just did a 4 family dwelling three weeks ago for a good client (bank) and gave them a little break on the fee (should have been $650, I charged them $575) - which the borrower pays anyway, so actually, I gave the BORROWER a break. Low and behold, I get a call from my client telling me they are turning down the loan because of VERY BAD credit (I didn't just say that), at any rate, the borrower is going to another lender and asked my client if I could change the "papers" - which consists of about 15 pages MOST of which have the first lenders name on and reprint the digital photos and get a release letter, all of which takes time (start to finish, maybe about an hour and then mail (express or fed-ex which will cost ME about $15 give or take. I said OK, I'll do it for $100 (net $85). Borrowers said TOO EXPENSIVE. My reply was, "They can afford $100,000 for a property, they can AFFORD to pay another appraiser another FULL fee". I'll bend and twist a little for anyone, especially if it is someone who REALLY can't afford it, but give me crap and I'll cut off my nose to spite my face. Notice? No nose.

 

[Mountain Man]

Wooah, you look better now Ray.

Rob,
The lender typically is our client, not the borrower. Yes the borrower pays for the cost of the appraisal, but that is just part of the cost of wanting the money (loan). Goes back to the green rule "he who has the green, rules!" If you can get a release from lender A to re-printed the report for lender B, that is fine and may save some money from another full fee. But, I still charge for having to re-print the report because it does take time, effort, and there is a direct cost of doing so.

Mell.

 

[Anonymous]

This is absolutely legal. I also charge for this service . This takes time away from the staff (whom we have to pay) to prepare and document the releases required by law, prepare and change the appraisal report and use our equipment (which we had to buy) and consumables (which we had to buy) in our office (for which we pay rent). Should we charge for this? Of course.

I do not intend for this to sound sarcastic, but sir, in what business do you make a living? How much of what you do, do you do for free? How much of what you do, do you loose money on? Chances are not much, or you would not be in any business for long. You must remember that we are not out here simply to provide our clients with appraisals. We are, for the most part, also small business persons who must be able to stay in business while providing our clients with services.

 

[Rob]

Hey Bill, thanks for your input. Can't say that I agree with you though. To pay the same fee to have it recertified seems silly. They didn't have to come to the house a second time, didn't have to re-evaluate it or re-measure it, didn't have to do his comparisons again, besides the paperwork and mailing it (probably done by a clerical employee), what did they have to do? Just doesn't seem appropriate to pay the same fee for much different services. I agree the first fee was dirt cheap (probably subsidised by lender "A") but to come back and hit me the same fee???
Well thanks again all!!

 

[Pamela Crowley (Florida)]

Rob,

You don't say what form this appraisal report was on. $125 is exceptionally cheap for any appraisal. It's just under what I charge for a marketability non-appraisal report that gives a picture and no value. I charge at least $100 to change a report from one lender to another after all necessary permissions are received.

If this same appraiser will give the second lender the same report for the same price, consider yourself very lucky.

The next question would be: Have you ever heard of 'You get what you pay for'? Personally, I think any appraiser doing an appraisal for that kind of fee is a disgrace to my profession and there is a good chance that incompetence might be involved. S/he should probably still be flipping burgers at MickyDs. Have you checked to verify a valid appraisers license?

 

[Anonymous]

Rob:

I didnt say I charge full fee. I said I charged a fee. What that fee is is up to the appraiser/company. You may certainly negotiate with him.

 

[Rob]

Bill,

Paying a fee really isn't my complaint, I more than expected to do so. Just don't think it's appropriate to charge the same fee (even if it was dirt cheap). Just thought there might be a regulation on this. I tried to have the appraisal company negotiate the fee, but they were firm. Guess there isn't much you can do!!
Again, Thanks for your comments.

 

[Pamela Crowley (Florida)]

Bill,

Paying a fee really isn't my complaint, I more than expected to do so. Just don't think it's appropriate to charge the same fee (even if it was dirt cheap). Just thought there might be a regulation on this. I tried to have the appraisal company negotiate the fee, but they were firm. Guess there isn't much you can do!!
Again, Thanks for your comments.

They could have decided not to do it at all. I sincerely doubt you would find any other appraiser to do a new appraisal for anywhere near this cheap. You really need to consider yourself very, very luck and just get on with it. If it were me, I would also demand payment in advance.

 

[Anonymous]

rob,

out of curiosity, how much are u willing to pay for this service??