Paid $450 for an appraisal that was never done, shouldn't we get our money back?

[~Wg~]

What is the name of your state (only U.S. law)? Michigan


We're in the process of buying a home. We paid $450 for an appraisal. At the time that we paid, we were told that the $450 is non-refundable and we were fine with that. But they later told us that an appraisal was not needed because one was already done within a month ago on the house that we're looking to buy, so they'll use the appraisal that was previously done.

If an appraisal was not done, shouldn't we get our money back? Now they're telling us that they will not refund us the $450 because it's non-refundable, but no service was render.

Please help.

[nextwife]

Ask if they can apply the money toward your overall closing costs, rather than refund it.

[HUD-1]

In some cases, they collect the $450 from a subsequent buyer (you) and refund it to the person who initially paid for the appraisal. This would be acceptable. If they are collecting twice on the appraisal fee, then they have a potential RESPA violation as they are marking up the cost.

[~Wg~]

nextwife, Thank you for your suggestion, I'll ask that of them.

HUD-1, as of now it does seem like they're collecting twice on it. They did say that an appraisal was previously done. I'm sure someone had already paid on the first appraisal. Now that I've paid for an appraisal, they're telling me it's not needed, yet they won't give me a refund either.

Is there anything I can do?

[HUD-1]

You can Google "RESPA Section 8 unearned fees" They cannot charge for services that were not performed. You still need to see if: they are using your funds to pay off the original borrower or they will be giving you a $450 credit at closing.

[HomeGuru]

It is quite possible that fees were in fact incurred but no appraisal was done.
If the appraiser spent time researching comps etc., then they are entitled to the fee or a portion thereof.