Be Apprized of Real Estate Appraiser Requirements
Though rules and regulations differ state-to-state, the national standard set for appraiser qualifications are as follows:
- Must have college degree
- Complete prelicensing courses
- Acquire industry experience
- and Pass the appraiser exam
In many places across the United States, current market values are not coming in at offer or at list price. The finger may be pointed soley at the appraiser, rather than taking a look at other factors at play.
A few questions to consider: "Was the property priced correctly at the time of listing on the market?" or "Did the property go into a multiple offer situation that pushed the price into the upper atmosphere? or "Does location (backing up to high trafficed road) or poor condition play a part in an appraisal?"
If an appraisal comes in low, a rebuttal can be requested but new information must be brought in from other reliable sources. A low report does not mean that the appraiser did not do a thorough job, it could be that the most recent comparable's have yet to catch up with the current market.
Appraisers must comply with underwriting guidelines. They report to lender underwriters - not buyers. Understand their role, how they work and counsel clients to ensure they comprehend the entire process. Avoid issues before they happen if possible to continue moving forward.
As I have stated before, there are options for home buyers:
- Cancel the contract
- Negotiate a lower sales price
- Both sides can meet in the middle
- Ask the lender for a second appraisal to be done
- Bring cash to closing to make up for deficit amount
Granted, there are a few appraisers that are not privvy to local information or cut corners, preventing an informed decision about a property. Unfortunately some people think all appraisers hide in the shadows lurking to kill deals without consequences. Most professionals I know have worked extremely hard to attain their profession through a solid reputation.
It is disheartening and sometimes shocking to see any real estate professional get publicly lambasted online by consumers and others because a deal went south after the appraisal came in under expectation.
So many are willing to jump on that bandwagon.
I am not.
With so much to lose, why would an appraiser take a chance of destroying their livelhood by intentionally manipulating numbers, omitting information or using none like-kind comparables to hurt a home buyer?
The answer, they wouldn't. My advice: Education along with experience is a good teacher in the real estate industry. Get some before seeking attention online, creating senseless drama or breaching ethical guidelines!
Looking for an experienced Realtor that goes to work for you? Look no further and call 435.632.9374 or go to: wanda@buynsellutah.com. Glad to help achieve your real estate goals because Wanda Can!
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