FAQ’s about Appraisals for Home Buyers.

By
Real Estate Broker/Owner with DMK Real Estate Ct RE Broker 0789963

FAQ’s about Appraisals for Home Buyers.

RISMedia article on “Common Myths about Appraisals in the Home-Buying Process” answers many of the day to day questions Realtors answer about the appraisal process. Here are some of the key points covered in the article.

Lenders are not permitted to communicate with the appraiser.

  • False ~ Lender must communicate with the appraiser and in essence provide appropriate information such as the intended of use of the appraisal, the scope of the work necessary for credible assignment results and more.

An appraiser is hired by the borrower.

  • False ~ Even though the borrower may pay for the appraisal, the appraiser is hired by the lender and the report goes to them. Majority of the time the lender may forward a copy to the borrower. Of course besides applying for a loan a home owner may order an appraisal on their own to determine current market value, for tax purposes or many other reasons.

Real estate brokers are prohibited from communicating with appraisers.

  • False ~ Brokers are permitted to communicate with the appraiser and provide additional information as long as it is not intended to unduly influence the outcome of the appraisal. Providing relevant information such as terms of sale, local comps, green features  and home improvements can assist the appraiser in his/hers opinion of value.

What if there are questions or concerns regarding the complete appraisal?

  • If there are concerns or questions regarding the appraisal then there are steps to take for Realtors, Builders, Lenders, Buyers & Sellers can address such issues by placing a request to the appraiser to provide further details to their conclusion.

 

To read the full articles by RISMedia go to:- 
http://rismedia.com/2014-03-18/common-myths-about-appraisals-in-the-home-buying-process/

 

** For Real Estate agents go to www.realtor.org/appraisal and sign in, you will find the same information there in a brochure.

 

Assisting Home Buyers & Sellers with step by step guidance in Fairfield County, Connecticut contact DMK Real Estate, Darien, Ct.

 

For more information regarding home buying and selling in Fairfield County contact DMK Real Estate in Darien, CT. DMK Real Estate & Property Management is a full service license Connecticut Real Estate Broker firm that serves lower Fairfield County. With lower overhead costs DMK Realty can fulfill buyers and sellers needs locally and on the internet at lower costs compared to the larger national brands.

 

 

 

Posted by

David Popoff
Connecticut Licensed Real Estate Broker
Realtor® Green
Seller Representative Specialist
Accredited Buyer Representative
candidate
LEED AP Homes

 

DMK Real Estate, Darien, CT.
Cell (203) 228-0646
DMKrealestate.com

 

 

 

DMK Realty, 06820 

 

 

 

 

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Re-Blogged 6 times:

Re-Blogged By Re-Blogged At
  1. Debbie Reynolds 03/28/2014 08:27 AM
  2. ReadySetLoan Condo Approval Team 03/30/2014 09:21 PM
  3. MaryKay Shumway, Door County 03/30/2014 04:05 AM
  4. Roy Kelley 03/31/2014 12:03 AM
  5. Will Nesbitt 03/31/2014 12:47 AM
  6. David A. Weaver 03/31/2014 03:52 AM
Topic:
Home Buying
Location:
Connecticut Fairfield County Darien
Groups:
Realtors®
Mortgages
The Lounge at Active Rain
New England Professionals
Connecticut Professionals
Tags:
dmk real estate
home appraisals ct

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Ambassador
1,683,031
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

David great information. I often get questions about appraisals and this answers a lot of questions that people want to know.

Mar 26, 2014 11:04 PM #1
Rainer
145,061
Rick Cignoli
Norcom Mortgage NMLS# 71655 - Watertown, CT
Sr. Mortgage Officer

Thanks for sharing David! The key phrase is "exerting undue influence on the outcome of the appraisal." 

Mar 26, 2014 11:29 PM #2
Rainmaker
749,469
David Popoff
DMK Real Estate - Darien, CT
Realtor®,SRS, Green ~ Fairfield County, Ct

Thanks Noah.... and thanks Rick for pointing out that key phrase.

Mar 26, 2014 11:35 PM #3
Rainer
1,756,848
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi David.  Great questions and the right answers.

Mar 27, 2014 03:57 AM #4
Rainmaker
2,028,425
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning David. The appraisal process has definitely gotten better. The article was actually done very well.

Make it a great day!

Mar 28, 2014 01:40 AM #5
Ambassador
2,690,013
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Agents who understand the appraisal process price properties more realistically. 

Mar 29, 2014 09:15 PM #6
Rainer
76,643
Rob Lyszczarz
RE/MAX Properties Unlimited - Westfield, NJ
I've been doing this for a long time and even I misunderstood a couple of those criteria. Thanks
Mar 29, 2014 10:49 PM #7
Rainmaker
1,194,513
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

David, good information dispelling some of the myths about appraisals.

Mar 29, 2014 11:01 PM #8
Rainmaker
1,682,368
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Excellent information about a highly mis-understood process. That being said it's not very easy to challenge an appraisal and the process can delay a deal to the point of killing it.

Mar 29, 2014 11:24 PM #9
Rainmaker
348,434
ReadySetLoan Condo Approval Team
ReadySetLoan Condo Team LLC - South Windsor, CT
The FHA/VA Condo Project Approval Specialists

Great article, David, to dispell some of the myths about appraisals.  Despite the regulatory changes that occurred forbidding mortgage brokers and LO's to choose the appraiser, a certain level of communication still takes place.

Mar 30, 2014 01:24 AM #10
Ambassador
1,594,589
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

David excellent post, there is often misconception as to communication between agents and appraisers and appraiser  and loan officer.  Some degree of communication is a must.

Mar 30, 2014 07:51 AM #11
Rainmaker
892,021
Kat Palmiotti
Grand Lux Realty, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

I've had appraisers tell me they weren't supposed to talk to me and others who chat away.  Each one appears to work differently!

Mar 30, 2014 09:08 PM #12
Rainmaker
749,469
David Popoff
DMK Real Estate - Darien, CT
Realtor®,SRS, Green ~ Fairfield County, Ct

Thanks for all the in put, the article is very useful and recommended reading.

Mar 30, 2014 10:30 PM #13
Rainer
240,103
Jesse Skolkin
Independent New York State Certified Real Estate Appraiser - Fresh Meadows, NY

Regarding this quote:

What if there are questions or concerns regarding the complete appraisal?

  • If there are concerns or questions regarding the appraisal then there are steps to take for Realtors, Builders, Lenders, Buyers & Sellers can address such issues by placing a request to the appraiser to provide further details to their conclusion.

Not entirely correct.  Under USPAP (Uniform Standards of Profesional Appraisal Practice):

275 An appraiser must not disclose: (1) confidential information; or (2) assignment results to anyone

276 other than:

277 the client;

278 persons specifically authorized by the client;

279 state appraiser regulatory agencies;

280 third parties as may be authorized by due process of law; or

281 a duly authorized professional peer review committee except when such disclosure to a

282 committee would violate applicable law or regulation.

 

283 A member of a duly authorized professional peer review committee must not disclose confidential

 

284 information presented to the committee.

 

 

 

 

 

 

 

 

 

 

 

Mar 31, 2014 02:07 AM #14
Rainmaker
749,469
David Popoff
DMK Real Estate - Darien, CT
Realtor®,SRS, Green ~ Fairfield County, Ct

Yes Jesse that is correct, the appraisal is only meant for the intended parties, the ones who ordered it....ie the client...be it a builder, the bank, the owner...etc 

Mar 31, 2014 02:17 AM #15
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Rainmaker
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David Popoff

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