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Real Estate Appraisal Fees
#8662736
08/12/22 10:10 PM
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Joined: Jun 2015
Posts: 5,923
Jgraider
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Looking for answer to the question, specifically in the McKinney/Anna area. What is the average cost of a real estate appraisal for a new build, 2600 sq ft home? My son was quoted $700 for this, and had to be paid for up front, not at closing. Just wondering if this is a competitive price. Thanks.
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8662738
08/12/22 10:12 PM
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Joined: May 2009
Posts: 24,362
dkershen
Rev Dave
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Rev Dave
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To be sure of hitting the target, shoot first and call whatever you hit the target.www.NewHopeEquine.com - Health and Healing through Horses.
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8662796
08/12/22 11:16 PM
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Joined: Apr 2012
Posts: 1,687
SherpaPhil
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Don't know on the amount, but up front is customary for appraisers.
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8662803
08/12/22 11:27 PM
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Joined: Mar 2013
Posts: 5,039
jetdad
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Your post indicates your son is engaging the appraiser. Is there no lender involved? Is this a custom home or a production home? Sounds kind of high to me if it's a "to be constructed" appraisal and no inspection/measurements, etc. are required of the appraiser. In other words, the appraisal is based on plans. Most appraisals ordered by lenders are paid at closing. Need more details.
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Re: Real Estate Appraisal Fees
[Re: dkershen]
#8662836
08/13/22 12:21 AM
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Joined: Jul 2015
Posts: 23,179
Bee'z
The Beedazzler
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The Beedazzler
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That is on point for pricing in the current times right now for that. I would go down there for $700 and get it knocked out but lenders have guidelines and procedures so that would not work unfortunately. Also, the appraiser gets paid his fee and then an appraisal management company who is the third party adds their fee onto that. The appraiser here is only probably making $550 or so and the AMC is taking the rest.
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Re: Real Estate Appraisal Fees
[Re: Bee'z]
#8662865
08/13/22 12:47 AM
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Joined: Jun 2015
Posts: 5,923
Jgraider
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That is on point for pricing in the current times right now for that. I would go down there for $700 and get it knocked out but lenders have guidelines and procedures so that would not work unfortunately. Also, the appraiser gets paid his fee and then an appraisal management company who is the third party adds their fee onto that. The appraiser here is only probably making $550 or so and the AMC is taking the rest. That makes sense. My son will have a 130k mortgage on a $450k home that will be finished by Sept 30th. The preferred lender of the homebuilder is requiring the $700 fee be paid up front. I haven't had a mortgage in quite a while, but I never remember paying up front, only at closing. Since there's so much equity in this home, is there any way to waive the appraisal totally?
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8662871
08/13/22 12:55 AM
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Joined: Jul 2015
Posts: 23,179
Bee'z
The Beedazzler
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The Beedazzler
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There actually is and with the numbers you just gave me it may be and they will just settle it at closing if an appraisal is not completed. They take the money up front and it sits with the title company because I am on around a 60-90 day wait on orders completed.
Edit to add: They also are probably covering if they do have to have the appraisal and the appraiser goes out next week and completes it the house will need a final once it is completed. $550+$150=$700
Last edited by HoneyBeez; 08/13/22 01:01 AM.
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Re: Real Estate Appraisal Fees
[Re: jetdad]
#8662875
08/13/22 12:59 AM
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Joined: Jun 2015
Posts: 5,923
Jgraider
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Your post indicates your son is engaging the appraiser. Is there no lender involved? Is this a custom home or a production home? Sounds kind of high to me if it's a "to be constructed" appraisal and no inspection/measurements, etc. are required of the appraiser. In other words, the appraisal is based on plans. Most appraisals ordered by lenders are paid at closing. Need more details. My understanding as well. This is not far from you, in Anna, TX. Stonehollow homes IIRC.
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8662891
08/13/22 01:22 AM
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Joined: Aug 2009
Posts: 22,716
BigPig
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We’ve seen as high as $1,000 during the craziness of last year. Strange thing is, I’ve seen more lenders waiving appraisals this year vs last year, and the market this year is unpredictable
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8662928
08/13/22 01:59 AM
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Joined: Aug 2009
Posts: 22,716
BigPig
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It’s all a scam anyways. Had an appraisal come back today, he got the square footage exact based on the build plan and managed to unbiasedly put the appraised value at exactly the contract price. It’s amazing how accurate they are when they have all the information in their hands
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Re: Real Estate Appraisal Fees
[Re: BigPig]
#8662935
08/13/22 02:05 AM
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Joined: Jul 2015
Posts: 23,179
Bee'z
The Beedazzler
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The Beedazzler
Joined: Jul 2015
Posts: 23,179 |
It’s all a scam anyways. Had an appraisal come back today, he got the square footage exact based on the build plan and managed to unbiasedly put the appraised value at exactly the contract price. It’s amazing how accurate they are when they have all the information in their hands You just described a desktop appraisal that he got paid $75 and decided to put his career on the line for. I am not that guy but they are out there.
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8663016
08/13/22 05:28 AM
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Joined: Feb 2010
Posts: 7,253
jhenderson
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I’ve heard of 700-1000 pretty regularly last several months.
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8663037
08/13/22 11:24 AM
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Joined: Nov 2018
Posts: 1,948
Davis300
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We just paid $700 in the Weatherford area last month on our custom home. Ridiculous BS
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8663098
08/13/22 01:02 PM
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Joined: Aug 2008
Posts: 449
jmac24
Bird Dog
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Bird Dog
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sounds reasonable. in a lot of cases you are paying for the appraisal and for having it reviewed by a different company. However for a simple home build I doubt there is a review process.
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8663101
08/13/22 01:07 PM
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Joined: Sep 2004
Posts: 12,423
RedRanger
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Hell, I thought almost everyone on this forum paid cash for their homes
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8663114
08/13/22 01:34 PM
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Joined: Jun 2015
Posts: 5,923
Jgraider
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So, seriously......it's common in that part of the world to charge $700 for a $130k mortgage on a $450k home?
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8663285
08/13/22 05:52 PM
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Joined: Sep 2004
Posts: 10,854
DannyB
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I would be more concerned about the September 30 finish date than the appraiser's fee. That's too fast for quality work.
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8663300
08/13/22 06:25 PM
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Joined: Dec 2009
Posts: 9,844
The Dude Abides
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So, seriously......it's common in that part of the world to charge $700 for a $130k mortgage on a $450k home? I don't see what the $130K mortgage has to do with the appraisal. The lender wants to know what the house is valued at (appraisal documentation, which you are paying for), not what you think it will sell for ($450K).
Last edited by The Dude Abides; 08/13/22 06:42 PM.
I am still looking for the perfect apron, one with reinforced knee areas would be perfect.
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Re: Real Estate Appraisal Fees
[Re: DannyB]
#8663303
08/13/22 06:32 PM
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Joined: Jun 2015
Posts: 5,923
Jgraider
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I would be more concerned about the September 30 finish date than the appraiser's fee. That's too fast for quality work. It's been under construction for 5 months already and the Sept 30 date was suggested by the builder. I still fail to see the need for a $700 appraisal for a home the sells for $450k. According to my math that's $320k in equity the day he moves in. What's worse is that the mortgage broker is in McKinney, and if anyone should know the market that's right in their backyard it would be them, I thought anyway. Maybe I'm missing something.
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8663346
08/13/22 07:52 PM
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Joined: Jan 2010
Posts: 22,997
fadetoblack64
giddyup
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giddyup
Joined: Jan 2010
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I would be more concerned about the September 30 finish date than the appraiser's fee. That's too fast for quality work. It's been under construction for 5 months already and the Sept 30 date was suggested by the builder. I still fail to see the need for a $700 appraisal for a home the sells for $450k. According to my math that's $320k in equity the day he moves in. What's worse is that the mortgage broker is in McKinney, and if anyone should know the market that's right in their backyard it would be them, I thought anyway. Maybe I'm missing something. Nope...........theyre crooks at this point............an appraisal should not be needed in the OPs loan.
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8663376
08/13/22 08:34 PM
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Joined: Sep 2004
Posts: 10,854
DannyB
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When I was still building homes the appraisal was done before ever breaking ground, using the house plan and a semi-itemized list of the components that were going into it. In some cases a local bank may appraise it in house themselves. Five months into construction doesn't make much sense unless the project was going to go over budget or something was added to the plan. Even so, with the OP's high equity I don't see the need for the appraisal.
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8663402
08/13/22 09:08 PM
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Joined: Mar 2013
Posts: 5,039
jetdad
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"Nope...........theyre crooks at this point............an appraisal should not be needed in the OPs loan."
An appraisal is a requirement if the loan is to be sold in the secondary market. Most are.
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Re: Real Estate Appraisal Fees
[Re: DannyB]
#8663409
08/13/22 09:19 PM
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Joined: Nov 2010
Posts: 4,136
DeerTamales
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When I was still building homes the appraisal was done before ever breaking ground, using the house plan and a semi-itemized list of the components that were going into it. In some cases a local bank may appraise it in house themselves. Five months into construction doesn't make much sense unless the project was going to go over budget or something was added to the plan. Even so, with the OP's high equity I don't see the need for the appraisal. There's a couple reasons why it's being done on the back end. I for example can do mine up front off of plans, specs, and cost breakdown if borrower is carrying the loan and then do a recert and final for $250 to confirm home was built to specs provided. This is on my 1X close construction loans. If OP is purchasing final product from builder and builder carried the contsruction then a full appraisal is required by lender if going secondary market. Fannie/Freddie guidelines will most likely require an appraisal for it to be sold/serviced as someone else said, despite the LTV %. All of my appraisal waivers are exising homes. Price is accurate unfortunaly for a new construction project. I've had them as high as $1300 for new builds on acreage.
Last edited by DeerTamales; 08/13/22 09:21 PM.
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8663461
08/13/22 10:22 PM
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Joined: Jun 2015
Posts: 5,923
Jgraider
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Info is most appreciated fellas.
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