I closed a real estate purchase for one of my clients today. When I looked at her HUD statement I was dumbfounded. It was a FHA purchase. The Metro Detroit home was only priced at $73,000. But you wouldn't believe it.
The cost of the appraisal was $1150. This big lender uses an appraisal company like the HVCC. They wanted to be ahead of the game. Thanks to whoever thought of HVCC. You are a jerk. You have run up the price of an appraisal to the average consumer. Congratulations on screwing up and costing the the people who can afford it the least more money.
$1150 for an appraisal and a re-inspection. That is a rip off. I am glad we are paying some third party to gouge a person buying a $73,000 home.
For those of you don't know what HVCC is..... some politician early this year got a law passed mandating that appraisals would be ordered thru a third party. This was to alleviate the mortgage company and the real estate agent from influencing the appraiser. The intent was to prevent appraisal fraud. Now there is just out and out gouging going on. I have seen mortgage companies take a $500 deposit from a buyer and not return anything to the buyer when the house doesn't appraise.
A few short years ago you could get an appraisal for $300. So we protect the bank and gouge the consumer. Some things never change. Thanks Mr. politician!
Sad but true.
__________________________________________________________
My Month of April quote:
"Sometimes the only way to get to the far shore is to lose sight of the shore you just left"
Russ Ravary
"helping make your move easier"
your local Metro Detroit Realtor helping clients like you sell and buy homes through out the entire Metro Detroit suburbs. I love showing and selling Oakland County and Livingston County Lake front homes too.
Russ
The customer was ripped off.
Good luck and success.
Lou Ludwig
I've got it! Let's come up with the HSCC (Home Selling Code of Conduct), the HICC (Home Inspection Code of Conduct) and the HCCC (Home Closing Code of Conduct). Then we can triple the prices of every part of the transaction. That way the economy can go off a cliff quickly and efficiently. : )
Hi Russ I haven't run across this yet...it is terrible and when is this stuff going to end...so we can enjoy our business of meeting the real estate needs of our clients instead of constantly witnessing the garbage that seems to be coming across these transactions?
Russ - you can thank Andrew Cuomo for that. Yes - consumer was ripped off. HVCC is dying though - should be repealed in the somewhat near future.
I thought FHA placed a limit on the appraisal cost? Wow Russ, I've closed 2 FHA deals recently and haven't seen an appraisal over $450. Unbelievable.
$1,150 for an appraisal????!!!!!!!! Russ, this is unbelievable. How did the Lender explain this? Like Kris before me, my recent FHA appraisals were under $400.
Now, THAT'S really helping our economy, isn't it?! I have never heard of 3 appraisals costing that much here!!
I hope you and yours have a wonderful Thanksgiving...
Russ,
I can't believe the price of the appraisal and reinspection. We complain about $400 for the appraisal and $100 for the reinspection here in Tucson. WOW!
Mike in Tucson