Rental Property Investor · Austin, TX · Member since 2017 · 30 posts · 14 votes
Just got my closing disclosure and was blown away when I saw that the appraisal fee is $1,025. I think the most I’ve ever paid for this is $750 and I was thrown off then. Also for some context this is in Indianapolis. Are a lot of people seeing this and is there a way to shop an appraisal because I feel like an expense that high for that type of service should be something you can shop for?
Investor · Bethlehem, PA · Member since 2016 · 929 posts · 951 votes
3y
@Ivan May it depends on the lender you're working with. Most lenders will have a list of approved appraisers or Appraisal Management Companies (AMCs) they can order from. You should reach out to your account rep at the lender to discuss appraisal fees and opportunities to reduce the price.
$1,025 is very high for a single family property... $700 is more in line with market...
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
3y
Is the appraisal as a rental property? The reason I ask is I used to pay $400 for an appraisal I was living in but $700 for a rental property appraisal because they looked up comparable income properties to appraise it that way as well.
So if people are saying $700 is normal for an SFR you may be paying that plus $300 extra for the income approach?
A lot of DSCR/Hard Money lenders charge an up front fee for the appraisal. They then use these funds to "bid" out the appraiser to someone in their network who is available. The actual charge of the appraisal may be more or less that what is charged to the client. Typically the difference is made up at closing. So if they can get it cheaper, they refund you the difference. If it is more expensive they charge you the extra at closing.
For populated areas in the Midwest(like Indianapolis) I typically see actual appraisal charges of 500-600. These appraisals include "as is" value and market rent. Appraisals with ARV might be coming in a little higher. I have not seen any come in as high as you are being charged.