We spend as much as $15,000 per month on extra appraisal fees that we as a company absorb and do not pass on to borrowers.
One of these costs is “Rush Fees.” We order all appraisals as “rushes” and we absorb the extra cost, for several reasons: (1) we think we get better quality work when we pay the extra fee; (2) we think appraisers deserve the extra pay; and (3) everyone likes to remove the appraisal contingency ASAP.
The other cost we absorb is “second appraisals.” If we think the underwriter might call for an appraisal review, we automatically order a second appraisal instead. Second appraisals are more likely to come in at value b/c the appraiser can inspect the home from the inside and speak with the Realtors. Also, ordering the appraisal up front speeds up the process significantly (as opposed to waiting for a review at the 11th hour).
Our extra appraisal costs are significant, but they are more than made up for with increased business resulting from our vastly superior service levels.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646