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Where have the Appraisals gone?

By
Real Estate Agent with Century 21, Preferred Properties

I got my pricing back on a listing the other day in what was record time. Speaking to a couple of friends of mine in this market this isn't isolated and they are coming back much more rapidly and right on the bpo price. To the penny. It got me thinking about the appraisals. Frequently, in the past, the bpos needed to come in close to the appraisal price and if it didn't they would order additional bpos or more detail on the one they already had. It seems that more and more lately the bpo is the only thing going. This isn't a bad thing if it's a good bpo and a full interior that can itemize damage but when it's not this could be a problem. Even if a lender has an old appraisal it probably isn't relevant anymore if it has too much age. I always try to do a good thorough report that arrives at a price the property will actually sell for but I also know of agents that simply make sure it matches the tax assessors value and go on their merry way. What has happened to the appraisals? Are any of you running into this as well? All I can say is price very carefully and do your homework because your opinion may be the only one that counts.

Happy Closings;)

Comments(3)

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Bill Ladewig
LoanOfficerSchool.com - Escondido, CA
Experience Is Your Advantage

Chris, unforunately, due to HVCC, your property may be appraised by a New York appraiser and your research will not matter.  No kidding. 

Sep 06, 2009 10:41 AM
Mark Ruda
Mark A Ruda - Fox River Grove, IL

Chris:

I think you'll see more of that for one simple reason: interior BPO cost = $60 to $75; full 1004 appraisals = $275+.

I'm a licensed appraiser in Illinois, and as much as I'd like to see more appraisal orders, I'll take the BPOs. Yes, they're nearly as much work, and despite the lack of USPAP certifications, the lenders, asset managers and BPO companies demand as much accountability, no matter the price. However, it's the way of the New World.

 

Nov 08, 2009 10:23 AM
Andrew Monaghan
The Monaghan Group - Glendale, AZ
CRS, GRI, EPro Associate Broker

The other challenge with appraisers is HVCC, there is much more legal responsibility on the appraisers.

i do agree with mark that the cost may also be a issue.

Dec 06, 2009 03:22 AM