Fair cost for appraisal

[Robert Leitner]

Hi all, I was buying an investment property in Phoenix, which I backed out of today after learning of HOA restrictions. I contacted my broker and asked him to hold the appraisal, unfortunately found out today that I missed stopping it. My RE agent was confused because she said it was never scheduled, the broker told me it was a table top appraisal so it didn't need to be scheduled because they don't go in the property. I've never had a table top appraisal on any of my properties and I'm a little frustrated that I'm paying full appraisal price for something less than that. Not that it matters anymore because I backed out for other reasons, but the appraisal came in $58k, or 19% under selling price. It's a crazy market and I expected it might come in under, but comps even support something within 10% of the selling price. My questions regarding the appraisal-

1. 1. It was $585, does that seem high for a table top appraisal? (for Phoenix if it matters)
   
2. 2. Do they have to disclose that they’re doing a table top beforehand?

[Brad S.]

@Robert Leitner

$585 does sound somewhat higher than average for a desktop report. But, understand that it is most likely an AMC (appraisal management company) which has been contracted to do the appraisal, and not the appraiser directly. So, the Appraiser's fee is probably significantly less.

As to the 2nd question- I’m not sure who you are referring to as “they,” but FYI, You (the Borrower) are not the Appraiser’s client, the Lender is. In this case, the appraisal is for the lender to make a lending decision, not for the Borrower to get an estimated value. So, no, they do not need to disclose to you that it is a desktop assignment.