What does an appraisal management company do?
These types of companies provide third-party management services to networks of appraisers during the sale and purchasing of residential homes, providing an objective and unbiased appraisal of the property in question.
Why do appraisal management companies need to be bonded?
Appraisal Management Company Surety Bonds are required for real estate appraisal management companies to conduct business. These license and permit surety bonds ensure that appraisal management companies evaluate homes based on their true market value, and in accordance with all applicable laws and real estate transaction regulations.
Who does an Appraisal Management Company Surety Bond protect?
The public. These surety bonds ensure that the appraisal management company operates in accordance with all applicable laws and regulations, and that those negatively affected are granted the appropriate compensation, recovering financial losses up to the penal sum of the bond. If the principal (appraisal management company) causes a loss, a claim can be filed against the bond. If the claim is validated, the surety will pay out to resolve the claim. Once a claim has been resolved, all monies paid out by the surety must be reimbursed by the principal, including any attorney’s fees incurred by the surety in the defense of the claim.
Which states require an Appraisal Management Company Surety Bond?
Pacific Surety proudly offers Appraisal Management Company Surety Bonds in the following states:
- New Mexico
- North Carolina
- South Dakota
- West Virginia
If you do not see your state listed, please contact us and our knowledgeable underwriters will assist you.
What is the bond amount for an Appraisal Management Company Surety Bond?
Amounts for Appraisal Management Company Surety Bonds vary and are set by the local rules and statutes regulating the industry. Therefore, bond amounts and requirements will fluctuate from bond to bond. Please contact us with specific questions, and our knowledgeable underwriting staff will assist you.
How much does an Appraisal Management Company Surety Bond cost?
Pricing for Appraisal Management Company Surety Bonds varies, and your premium will be based on the following factors:
- State the bond is required in
- Amount of the bond
- Term length of the bond
- Personal credit for all owners with at least a 10% ownership stake in the business
Individuals with good credit can expect to pay between 1%-5% of the bond amount. Qualified applicants could pay as little as $100 annually for a $10,000 Appraisal Management Company Surety Bond. To find out how much your bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get an Appraisal Management Company Surety Bond with bad credit?
Pacific Surety offers a wide-range of approvals, regardless of credit, for Appraisal Management Company Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. Applicants with substandard credit can expect to pay 5%-10% of the bond amount in premium. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
Where do I apply for an Appraisal Management Company Surety Bond?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.
How are bond claims handled for Appraisal Management Company Surety Bonds?
Unlike insurance, which protects your business, Appraisal Management Company Surety Bonds protect your clients. If an individual is damaged due to the principal’s fraudulent activities or any violation of the governing laws, the harmed party can file a claim with the surety company for relief. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. The principal is then required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety in the defense of the claim.
Claims can be detrimental to your business. Not only do they cause financial harm, they make it very difficult, if not impossible, to get bonded again.