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#398461 - 01/09/12 10:45 PM How come appraisers are allowed to charge up front?
Cool guy Offline
Major Contributor

Registered: 06/30/04
Posts: 2043
Loc: California
And then they take their sweet *** time to get them in. And if they need to reinspect they charge about a 20 percent trip fee. I 'm trying to buy a property and I probably got the worst appraiser on the planet.

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#398473 - 01/10/12 03:07 AM Re: How come appraisers are allowed to charge up front? [Re: Cool guy]
OverTheEdge Offline
Veteran Member

Registered: 08/24/08
Posts: 1008
Loc: Middle of Ohio
The reason they are allowed to charge up front is because they want paid even if the deal doesn't go through. Ususally they are the reason the deal doesn't go through. I do all reo, and I am quite clear with the buyer's agent that they should meet the appraiser at the property to make sure they turn the water on at the meter. Every appraisal on my properties has to be set up through me because only about 10 percent of them will turn the water on. They want to charge the trip fee and the easiest reason to charge it is to say all utilities were not on at the time of the appraisal. Appraisers get really mad when they find out they have to talk to the listing agent. In fact I had one bully my front desk into giving her the access info by telling my front desk that I wasn't returning calls. Well no, I didn't return the call cuz it was only two hours between the time you called me and then called my front desk back and hassled them. They charge 350 for the appraisal and then a 75 dollar trip fee when they go back out. I beleive they all count on that extra trip fee for every appraisal and will do anything to get into the property for the appraisal and gleefully report they have to go back out. Dorks.
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"No cause is lost as long as there is one fool left to pursue it". Wil Turner

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#398481 - 01/10/12 04:43 AM Re: How come appraisers are allowed to charge up front? [Re: Cool guy]
PA Roadkill Offline
Major Contributor

Registered: 11/15/06
Posts: 2050
Loc: The Middle of the Interstate
While everything above may be true, and I'm certainly not defending the appraisal industry; Appraisals are supposed to be unbiased evaluations of the value of a property at a particular point in time. By paying up front, the appraiser's compensation is not based on the property value and a closing.
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Broker-Owner Thirteen Years REO Experience
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#398483 - 01/10/12 05:38 AM Re: How come appraisers are allowed to charge up front? [Re: Cool guy]
Brad - W4BJM Offline
Major Contributor

Registered: 07/22/07
Posts: 1574
Loc: PIE/SRQ corridor
Originally Posted By: Cool guy
I 'm trying to buy a property and I probably got the worst appraiser on the planet.


I wonder if that appraiser gets a lot of QC issues or comp recommendations. grin

Sorry, couldn't resist! We all know that whatever they determine is deemed as good as gold.
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QC is evil

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#398486 - 01/10/12 06:19 AM Re: How come appraisers are allowed to charge up front? [Re: Cool guy]
Mike Hagen Offline
Veteran Member

Registered: 01/02/07
Posts: 724
Loc: Port Jefferson New York
Try this one, what to we feel about gratuities and the appraisal industry. I think it's a common practice around here and may exceed 15%. Any thoughts?

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#398516 - 01/10/12 01:54 PM Re: How come appraisers are allowed to charge up front? [Re: Cool guy]
jstip Offline
Member

Registered: 08/23/06
Posts: 216
Loc: Central PA
I wouldn't call waiting 30-45 days to get paid "paid up front".

I also wouldn't call turning reports in 48 hours "sweet *** time".

And trip fees are $125, not $75. smile

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