Appraisal Fee higher than GFE - HELP

[MBOhio2]

Okay, this is admittedly nit-picky, but I'm really irritated, so I need your thoughts/advice!

The GFE that was provided to us before clsoing estimated the appraisal fee at $450. The GFE also states that for services selected by the lender, including the appraisal, the cost cannot increase any more than 10% from the estimate. This would put the maximum appraisal cost at $495 ($450 + 10%).

During the UW process, we paid $445 for an appraisal. Here we are 2 1/2 months after closing and we just received an email from the appraisal company demanding another $150 for a supplemental appraisal (our house was a new build and the grass and driveway were installed after closing). I understand the logic of this supplemental appraisal because they needed to verify that the sod and driveway were in fact completed to justify the original appraisal amount. However, 1) I was never told that a supplemental appraisal was required; and 2) I certainly wasn't told there would be an additional fee that I would have to pay. At the time I paid the original $445 appraisal fee, nothing was said about another charge later and I was led to believe that the $445 I paid was the TOTAL appraisal cost (I even read the full appraisal and there is nothing about a supplemental appraisal stated there, it just says the appraisal is conditional on the sod/driveway being completed).

So.... out of principal, I don't feel I should have to pay the additional $150. Worst case scenario, I am wondering if I can point to the GFE and tell my lender that, at most, I will pay the different between the original charge ($445) and the maximum appraisal cost per the GFE ($495), which is $50.

Thoughts? Is my above rationale/understanding about the GFE correct?

[Anonymous]

Hello,

I had an appraisal done for $450 and the appraisal stated it was "subject to repairs." So we had the repairs done (should be completed today actually.) However, the moment I was told I needed a reinspection so he could mark off to show the repairs were complete, I asked how much that would cost. I think the good faith estimate doesn't leave room for reappraisals, therefore it's not included. Mine wasn't included either. I just want to close though so another $150 out of my pocket to get me into my home is okay with me. I may have been a little more hesitant had it been another $450, but I understand that he isn't going to do it for free. Lol. Just know that you're not alone and although the expense wasn't disclosed, those who don't need a reappraisal will never encounter it so we're the cases that do.

[Jazzzy]

The appraiser will get his/her fee for the final inspection from the lender. Appraisers can't make the trip back for free....it would be never-ending.

My husband is an appraiser, and he just got notified that repairs on a home had been done, and that it was ready for final inspection. He got there, and the repairs were not done. So, now he'll go back to the same property for the 3rd time (original inspection + 2 final inspections). He'll get fees and mileage for all the trips. And he should. Each time he goes back it is costing him time on other appraisals he could be doing. He is backed up by a full month with work. Believe me, he'd be happy if he never had to make a final inspection. They are not cost-effective for him.

Appraisers can't make these trips back for no fee. If you do not want to pay the fee, the negotiation is between you and the lender (because it's the lender who hired the appraiser). The appraiser will still come out whole.

[namvet]

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@Jazzzy wrote:

The appraiser will get his/her fee for the final inspection from the lender. Appraisers can't make the trip back for free....it would be never-ending.

My husband is an appraiser, and he just got notified that repairs on a home had been done, and that it was ready for final inspection. He got there, and the repairs were not done. So, now he'll go back to the same property for the 3rd time (original inspection + 2 final inspections). He'll get fees and mileage for all the trips. And he should. Each time he goes back it is costing him time on other appraisals he could be doing. He is backed up by a full month with work. Believe me, he'd be happy if he never had to make a final inspection. They are not cost-effective for him.

Appraisers can't make these trips back for no fee. If you do not want to pay the fee, the negotiation is between you and the lender (because it's the lender who hired the appraiser). The appraiser will still come out whole.

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  +1

[JusdoNit]

Yep

[MBOhio2]

To clarify, in no way am I suggesting that the appriaser should get the shaft here. I completely understand that they provided a service for which they should be paid. What I am trying to determine is whether this is something that I should have to pay for or whether this is something that the LENDER should have to pay for.

The lender chose the appraiser and apparently they also required the supplemental appraisal. I had no control over those decisions and they quoted me $450 for the appraisal in my GFE and never made any mention of a later appraisal fee. Therefore, I think the lender should have to pay for it.

[rbizzle]

I work for an appraisal management company and i see this all the time.  The fee might have been escrowed at closing.  The appraiser is going to need a fee to go back out but its not coming directly from you the bank or AMC will pay the appraiser.

[MBOhio2]

So if my lender is demanding that I pay the $150 directly to the appraisal company, should I refuse to pay it and tell them that its their responsibility?

[Anonymous]

I'm paying mine directly to my lender just like I did my appraisal (she pays the appraiser.) Yours may be different so it's worth looking into.

[MBOhio2]

As a quick update in case anyone else find themselves in this position, I gave up on fighting this and just paid the $150 to the appraiser. I still feel really misled, but oh well, time to move on!