Appraiser is demanding a fee

[evs3939]

What is the name of your state? CA
My husband and I applied for a refinancing through a broker - United Fidelity Mortgage. The broker hired an appraiser to appraise the current value of our home. Before the appraiser went to the actual location of our house, they informed our broker that our house will be appraised for the amount that we need to be able to refinance which was between $1m to $1.5m. The appraiser advised our broker that they did their homework through the computer and based on their findings through their computer, they were certain that our house will be appraised for the amount that we need. When the actual appraisal came, our house was appraised for $700,000 only, and of course our refinancing did not go through. Yet, the appraiser billed us for $175 which they claim for their travel fee. Are we obliged to pay that amount?

Since they were not able to come up with the value of the house that they promised us, my husband and I did not feel that we should pay them anything, since it was their mistake. If they were honest to tell us in the first place that our house will only be appraised for $700,000, we would not have let the broker request the appraiser to actually come to our house. Now, they keep on billing us for $175 and they threaten to refer us to the Collection Agency if we don't pay them by next week.

Please advice.

Thanks.What is the name of your state?

 

[Silverplum]

Are you kidding? Of course the appraiser is due a fee. Work done = Fee due. Doesn't matter if you got the results you wanted.

 

[TinkerBelleLuvr]

Just because you don't like the results doesn't mean that they didn't do the work. They did the appraisal. You owe the money.

 

[HomeGuru]

What is the name of your state? CA
My husband and I applied for a refinancing through a broker - United Fidelity Mortgage. The broker hired an appraiser to appraise the current value of our home. Before the appraiser went to the actual location of our house, they informed our broker that our house will be appraised for the amount that we need to be able to refinance which was between $1m to $1.5m. The appraiser advised our broker that they did their homework through the computer and based on their findings through their computer, they were certain that our house will be appraised for the amount that we need. When the actual appraisal came, our house was appraised for $700,000 only, and of course our refinancing did not go through. Yet, the appraiser billed us for $175 which they claim for their travel fee. Are we obliged to pay that amount?

Since they were not able to come up with the value of the house that they promised us, my husband and I did not feel that we should pay them anything, since it was their mistake. If they were honest to tell us in the first place that our house will only be appraised for $700,000, we would not have let the broker request the appraiser to actually come to our house. Now, they keep on billing us for $175 and they threaten to refer us to the Collection Agency if we don't pay them by next week.

Please advice.

Thanks.What is the name of your state?

**A: you owe the fee.

 

[ETex2]

Time is the only thing an appraiser has to sell.

It is against appraisal standards to accept an appraisal assignment based upon a predetermined value or even a range of value. If he did this, he is in violation. And if you fail to pay him since he didn't get to your required value, you are probably facing a lien put on your home, depending upon the laws in your state. Not to mention a deadbeat.

Yes, I'm an appraiser.

 

[HomeGuru]

Time is the only thing an appraiser has to sell.

It is against appraisal standards to accept an appraisal assignment based upon a predetermined value or even a range of value. If he did this, he is in violation. And if you fail to pay him since he didn't get to your required value, you are probably facing a lien put on your home, depending upon the laws in your state. Not to mention a deadbeat.

Yes, I'm an appraiser.

**A: I disagree on the time issue.

 

[ETex2]

**A: I disagree on the time issue.

Just something my mentor taught me 25 years ago when I first got into the business. Appraisers in my neck of the woods say it a lot. An attorney told me that once, too.

Of course our time includes our knowlege, analytical skills, experience, etc.. But like an attorney, when it gets down to it, what we are charging for you, is our time, but ours is spent preparing an appraisal, not offering legal expertise.

 

[evs3939]

Time is the only thing an appraiser has to sell.

It is against appraisal standards to accept an appraisal assignment based upon a predetermined value or even a range of value. If he did this, he is in violation. And if you fail to pay him since he didn't get to your required value, you are probably facing a lien put on your home, depending upon the laws in your state. Not to mention a deadbeat.

Yes, I'm an appraiser.

The reason we ordered an appraisal was because the appraiser told us it will be appraised for the value we needed. We never would have ordered an appraisal if we didn't get that predetermined value from them.

I called the owner yesterday and he said he will refer us to Collection Agency today instead of next Monday, 11-26-07 (the original date he put on his letter). I called my lawyer thru my prepaid legal services and I didn't get an answer from him yet. It normally takes them 1 or 2 business days to get back to us. Do you think it's best for us to just pay him the $175 and not wait for the decision of my lawyer? When you said we are probably facing a lien put on our home, I'm scared now. We have a very good credit score and it will just be ruined because of $175 which we feel we are not obliged to pay.

Thank you for your advice.

 

[Silverplum]

The reason we ordered an appraisal was because the appraiser told us it will be appraised for the value we needed. We never would have ordered an appraisal if we didn't get that predetermined value from them.

I called the owner yesterday and he said he will refer us to Collection Agency today instead of next Monday, 11-26-07 (the original date he put on his letter). I called my lawyer thru my prepaid legal services and I didn't get an answer from him yet. It normally takes them 1 or 2 business days to get back to us. Do you think it's best for us to just pay him the $175 and not wait for the decision of my lawyer? When you said we are probably facing a lien put on our home, I'm scared now. We have a very good credit score and it will just be ruined because of $175 which we feel we are not obliged to pay.

Thank you for your advice.

Asked and answered. Pay the fee. You do owe it.

 

[HomeGuru]

Just something my mentor taught me 25 years ago when I first got into the business. Appraisers in my neck of the woods say it a lot. An attorney told me that once, too.

Of course our time includes our knowlege, analytical skills, experience, etc.. But like an attorney, when it gets down to it, what we are charging for you, is our time, but ours is spent preparing an appraisal, not offering legal expertise.

**A: that's better.

 

[Zigner]

The reason we ordered an appraisal was because the appraiser told us it will be appraised for the value we needed. We never would have ordered an appraisal if we didn't get that predetermined value from them.

I called the owner yesterday and he said he will refer us to Collection Agency today instead of next Monday, 11-26-07 (the original date he put on his letter). I called my lawyer thru my prepaid legal services and I didn't get an answer from him yet. It normally takes them 1 or 2 business days to get back to us. Do you think it's best for us to just pay him the $175 and not wait for the decision of my lawyer? When you said we are probably facing a lien put on our home, I'm scared now. We have a very good credit score and it will just be ruined because of $175 which we feel we are not obliged to pay.

Thank you for your advice.

Then pay it and sue in small claims to have it refunded.

 

[HomeGuru]

Then pay it and sue in small claims to have it refunded.

**A: and what would be the basis of a small claims case here? The OP is not deserving of a refund.

 

[Zigner]

**A: and what would be the basis of a small claims case here? The OP is not deserving of a refund.

I NEVER said that our OP would be successful, but (all together now...) Anyone can sue anyone at any time for any thing.

 

[Silverplum]

I NEVER said that our OP would be successful, but (all together now...) Anyone can sue anyone at any time for any thing.

Plus, it shuts her up here.

 

[Ozark_Sophist]

OP should be glad appraiser was honest if the $175 fee bankrupts them. I refinanced (still have 65% equity) to buy another property. I went through my bank. I dealt with a vp (knew Mrs. OS from HS), but all requests for appraisals at the bank went through one individual who did not have access to loan applications (firewall). Otherwise, there is a potential for fraud and/or approving an unqualified applicant.