Working RE on The Great Debate on Appraisal Fees

[J Grant]

I was reading a listing's home disclosure and there was a home inspection.
There was an invoice indicating fee of $995.
I didn't know home inspector's fee has gone up so much ... unlike appraiser fees.
(I would put a sad emoji face but I still have problems with emojis on AF).

Here, I see competitive advertising from home inspection companies - their fees for regular houses seem in line with ours, but of course, they charge more for larger properties or if they add additional services like mold detection .

 

[George Hatch]

The AMCs are not the responsible party for disclosures to the not-their-client consumers. The lenders are. And the lenders know what the splits are.

Instead of scapegoating the AMCs on this one you should be blaming the lenders for what the lenders are doing.

 

[Fernando]

Why is disclosure of the fees so important to the appraiser?
To show to the borrower that appraisers are getting screwed?
Appraisers should get the best fees they can get from their clients prior to taking the order.

 

[Digger88]

What is the best possible outcome of separating the fees on the settlement statement? Do AMCs make billions off us? hundreds of millions I dont know but they will hold on to those profits with a death grip I dont think they're going to give them up easily they will stick us some other way.

 

[Fernando]

At first I thought AMC had more value like contacting the borrower on different times I can see the property.
Borrower and AMC didn't contact me.
So I did old way and contacted borrower and set the appointment instead of waiting for a response from AMC.
I explained to borrower what I will do and asked questions about the property.
Old way still better.

 

[George Hatch]

What is the best possible outcome of separating the fees on the settlement statement? Do AMCs make billions off us? hundreds of millions I dont know but they will hold on to those profits with a death grip I dont think they're going to give them up easily they will stick us some other way.

I believe the thinking is that if the AMCs are getting a set fee for their end then they will stop shopping the appraisers by fee.

 

[Mejappz]

Do AMCs make billions off us?

 

[George Hatch]

In fairness, $20B compared to what alternative cost? Because it isn't $20B compared to $0. Even when a lender isn't charging a fee for the appraisal (or the mgt of the appraisal) they're still passing 100% of the costs along to the consumers in the repayment terms of the loan.

 

[TerryRohrer]

In fairness, $20B compared to what alternative cost? Because it isn't $20B compared to $0. Even when a lender isn't charging a fee for the appraisal (or the mgt of the appraisal) they're still passing 100% of the costs along to the consumers in the repayment terms of the loan.

You ask this repeatedly. Since you know it isn't $0, provide the answer.

 

[George Hatch]

I don't know what the answer is and neither does anyone else. That doesn't excuse the use of the implication that the consumers are getting ripped off for $20B when we can clearly see the alternative isn't free and the unfair proceeds don't amount to $20b. There is no $20B to save, and anyone who put even 2 minutes into pondering the question would come to the same conclusion.

I use the "compared to what" point as a means of providing some context to the "status quo is flawed" allegation , as if perfect/unflawed is ever an option. It isn't, and everyone knows it isn't so I don't know why we even engage with the idea that the alternative could be perfect.