Appraisal process and re-inspection fee

[Mas Yoshida]

Appraisal occurred for a turnkey property which was still undergoing rehab. Apparently the expectation was that the appraiser would come back again to complete the appraisal once the rehab was complete. I am now getting charged a re-inspection fee from the lender to have the appraiser come out again once the rehab is done. 

Is this re-inspection fee normal and best practice? Lender is saying appraiser should have been told rehab is not complete and to come back when done. Turnkey provider is saying having the appraiser do a conditional approval and having them come back for a re-inspection is normal. 

Are they both right? How can this fee be avoided for future properties?

[Shaun Weekes]

@Mas Yoshida

Both parties are correct.  Your loan officer should have told you that if the home wasn't 100% completed the appraiser would need to come back out.  

In the future wait until all the work has been completed or you will be charged for a 1004D which will run you anywhere from $125 to $200 dollars. 

All of these fees are charged by the AMC ( Appraisal Management Company ) not the lender or bank.

I hope this helps and have a great day.