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Appraisals and Fees

Appraisals and Fees

If you’ve ever had an appraisal before, you’re probably aware they come with an assortment of fees. Most people just pay them, but for those who ask, the answers they find may be troubling. In the appraisal world, there are many guidelines and regulations. A typical appraisal will include the report – a summary of the house inspection and comparables. For the report, the appraiser will assess the size and condition of the house, find similarly sold houses, include any line item (house) differences and that is how they come to a determination about a house’s proposed value. Keep in mind this is only one way and what the home actually sells or insures for may be different. An appraisal is a good thing for each homeowner to have, and a necessary thing for financiers and lenders as they require it to do a complete assessment on their risk should anything happen, and the loan cannot be paid. For your appraisal, you can opt to hire your own, or, use the one that contracts with your lender. Typically the latter is the most common case. Appraisers come in as many forms as lenders. Some work alone, some under an entire association and others will be “alone” but commonly contracted through a third-party, such as a lender. No matter what type of appraiser you choose – one with a company or without – they will charge you a fee. An appraisal is a service you’re having done after all. However, those who end up using an appraiser with a management company have been finding their fees are much higher than the original quote. This is because the management company will charge a 35-50% fee on top of any direct appraisal related charge. Think of it as “overhead.” Unfortunately, neither the appraiser nor the customer can do much about it. Federal regulations do not say that a company must reveal these charges. They also don’t regulate how much extra can be added on to services. The solution? Go with appraisers you know and can trust. In Utah and the Salt Lake Area, we take the initiative to be just that. With us, what you see is what you get. So rest easy knowing that you’ll get an accurate, fair priced appraisal you can rely on in tax court, divorce, or when buying and selling. Call us today to make an appointment.

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