VA manages how much a Veteran can pay for an appraisal and sets time lines on how long a VA appraisal can take. The fee for Washington state has been $500 for an appraisal with up to 10 days for the appraisal to be delivered. Before the appraisal crisis, many would often complain about how long it took to get a VA appraisal…however, 10 days to receive an appraisal for $500 would now be a dream come true.
Well get ready for higher VA fees and for the turn times to take longer. VA just issued a notice that effective November 1, 2016, the cost for an appraisal for a single family home utilizing a VA mortgage will increase to $800! In addition, appraisers will be allowed 14 business days to complete an appraisal (up from 10 business days).
With VA increasing their appraisal fees, I don’t see the current pricing for other residential appraisals going back down to where they were before this crisis.
Honestly, I wish Congress would start regulating the cost and time frames with conventional and FHA appraisals. They should just “own it” as, in my opinion, they have had a lot to do with the current crisis the appraisal industry is in with the over-regulating.
Regulating the cost of an appraisal? Wouldn’t that be more regulation on top of the present regulation on appraisers? As a Broker/Appraiser (30+ years exp) the fees should be $800 per report paid to the appraiser. Each time I write an appraisal report it is 40-60 pages in length due to the demands of the lender as to data and content. So it is like writing a college term paper on each report and then the UAD compliment requirements. Appraisers write a report and them a middle man attempts to resell the appraisers report for more money. That is the problem. Each year it costs over $5,000 in insurance, license renewal, MLSListings data, updating computer appraisal software before the appraiser makes a dime. I used to be able to inspect 2 homes and write 2 appraisals in one day. Now it takes several days just to complete one report due to oversight and overregulation.
Tom, I think what has happened to the appraisal industry is terrible…especially with the AMC’s, which IMO seem useless. I hope the appraisal industry can be repaired pronto. I don’t know how an appraiser would have the time to take on an apprentice with all you have to currently do.
Thank you for your comment!!
I agree 100% with Tom. I’ve been an appraiser now for 40yrs. Many are getting out of the field due to the AMC’s underpaying the appraiser and the most over regulation I’ve ever seen. Pushing appraiser to use Regression for comp amenity adjustments is a joke unless you in a new tract neighborhood. I like the separation of the appraiser from the mortgage broker but the AMC model in not working. I give it about two years and the shortage will reach a critical level unless some major changes are made. Maybe the partial elimination of Dood/Frank.
Tom, I agree with you… however, I really miss the relationship I had with my appraiser prior the the (over)regulations. I trusted him when an appraisal came in lower than expected – I knew his experience. Now I have no idea who I’m working with and I’m not allowed to discuss the appraisal with the appraiser to gain further understanding on how a value was arrived at. Appraisers have no incentive to be competitive. It’s been a disservice to consumers.
With that said, I think appraisers deserve to be paid more than they have been. AMC’s should not be receiving more than a fair amount for placing an order.
I am seeing pricing for appraisals starting to come back down… something still needs to be done to help the industry and to make it easier for people to become appraisers.