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The elephant in the room - - FHA fees?

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Elliott

Thread Starter
Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
I've noticed that the going rate that appraisers charge and that
appear to be acceptable to many AMCs for an FHA appraisal
is significantly higher (like $50 to $200 more) than what is
'expected' for a typical Fannie 1004.

My difference in fees is near the lower end of the range.
But I've been surprised by even some of the AMC fee
schedules. The fees almost see 'high' which I know is
a oxymoron for an AMC.

How come? Or maybe the question is, "Why are Fannie
1004's so cheap in comparison?" (and I guess a potential
answer is, 'Because there are so many appraisers who can
do a Fannie 1004, and there are 'fewer' FHA appraisers).
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
I've stopped charging extra for FHA and MH appraisals. They don't seem to require any sigfnicant additional work. My fee schedule is based on time and expense and to some degree what I can squeeze out of a client in any given situation on any given day. Distance, improvements, market conditions, property type, etc. Some AMC behavior requires higher fees (iMortgage, LSI for example). Some get a discount - usually small independent AMC's run by or staffed by experienced appraisers who can run interference.
 

Vegan702

Senior Member
Joined
Feb 24, 2005
Professional Status
Certified Residential Appraiser
State
Nevada
Same here, I stopped charging any extra for FHA or MH unless it was just a more difficult appraisal than normal overall.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
The increased fee for an FHA appraisal was primarily due to the expanded inspection requirements and additional forms (VC sheets). Now that those have been dropped, I see no reason to charge more than what I would charge for a conventional appraisal.

An FHA appraisal is reported on a Fannie Mae 1004 form...so saying "a 1004 appraisal" is technically incorrect. The manufactured home appraisal usually requires additional work and the fee might be some what higher. There is more liability, in my opinion, in doing FHA and manufactured home appraisals.

Don't get many FHA assignements as there are appraisers here willing to do them for $250 and my fee starts at $375.
 

Delta85

Elite Member
Joined
Sep 22, 2007
Professional Status
Certified Residential Appraiser
State
Connecticut
There are still more requirements for an FHA appraisal compared to a standard 1004. The inspections take longer generally. And there is certainly more liability. I charge about $75 more for FHA reports on top of my 1004 fee.
 

Lawrence R.

Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
I have been charging about 25 more for FHA, since I spent all that time studying for the exam.m2:
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
There are still more requirements for an FHA appraisal compared to a standard 1004. The inspections take longer generally. And there is certainly more liability. I charge about $75 more for FHA reports on top of my 1004 fee.

Why is there more liability? IMO, there is less because FHA requirements are well documented, easily accessed and not particularly stringent.
 

Delta85

Elite Member
Joined
Sep 22, 2007
Professional Status
Certified Residential Appraiser
State
Connecticut
Why is there more liability? IMO, there is less because FHA requirements are well documented, easily accessed and not particularly stringent.

I guess the liability ties in with the requirements. They are one and the same. We are liable for checking and documenting much more than a normal 1004 appraisal.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
I charge what the market will bear. For FHA, there is a little more work and I have had no objections when charging $25 to $50 more.
 

Offshore

Senior Member
Joined
Dec 25, 2005
Professional Status
Certified Residential Appraiser
State
North Carolina
Why is there more liability? IMO, there is less because FHA requirements are well documented, easily accessed and not particularly stringent.
IMO there is more liability due to the higher LTV which is a given with FHA.
 
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