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Know your Appraiser

By
Mortgage and Lending with Mission Hills Mortgage Bankers

A couple of weeks ago one of our in house appraisers came to our office meeting to clue us in on the climate of things in the appraiser world. He had met with our Senior Underwriter and HUD's Senior Underwriter to get a bead on where their respective positions are regarding the declining markets in our area. ( I know it is a country wide problem).

Without boring you with the gory details, the jist of it is this. Now it is more important than ever to know your appraiser. In our area, like so many other areas of the industry, quite a few people jumped on the appraiser band wagon over the past few years. They did their required training, completed their required training appraisals etc. They got their licenses and hit the road.

The past 3-5 years have been very good to them. They didn't really have to do much in the way of indepth research, honing and polishing of their case pleading skills, and their appraisals were accepted. This is not in any way bashing good appraisers. They are the most important people in our lives. They really have their work cut out for them now. They must do so much more research, so much more detailed comparison of not just recent listed and sold comps, but also trends. If your appraiser does not have access to data that shows it was updated within the last 30 days, then they have outdated data.

Also, in addition to critical data, your appraiser should be on the phone with you the moment he or she see's that the subject property is in a declining market. They should be able to give you a ball park of where the value may come in. They should be at the top of your underwriters favorite appraisers to work with. This will go such a long way in being able to get your deals closed and on time.

Keep on top of your lenders DNU appraiser list. In the wake of so much turmoil in the market, the list has undoubtedly grown. Don't lose time using an appraiser that has been removed from the approved appraiser list.

Last but not least, don't bogg your appraiser down with needless value checks. This takes away from the time they have to work on the deals that are viable. There are plenty of tools out there to get the information for yourself. It is as accurate as possible without considering all of the facts of the property.

Your appraiser is your best friend right now. Treat them as well as you would your Mother or your grandmother.

Tchaka Owen
Galleria International Realty - Hollywood, FL
Kerry - I think it is ALWAYS important to know your appraiser(s), not just now!  I have several that I prefer to deal with and they never steer me wrong.  Ethical and honest people too.  Every realtor and loan officer should have a few.
Jan 24, 2008 04:36 PM
James Evans
James Evans & Associates - Aliso Viejo, CA
Orange County Appraisers

This is true, having an accurate/diligent appraiser is key in this new market. The values have dipped so rapidly that the "6 month FNMA" threshold is even over the timeline of what is relevant as an indication of current market value. Active listings weighed in with "days on market"  rule the top of the range, and appraisals completed without them are practically irrelevant.

.......there's alot of variables to weigh-  in this market, many different driving forces at work, you have to be keen,  even finding decent arms length transactions is a challenge with all of these bank owned properties flooding the markets.

 

Keep at it!~ it's good to hear from people like you!

 

Thanks James- Real Estate Appraiser 

 

Jan 24, 2008 08:48 PM
Kerry Cannon
Mission Hills Mortgage Bankers - Riverside, CA

I think it is so important for us all to share as much information as we can going forward. We are really all kind of "new" in the current climate we now find ourselves. Some have seen similar market conditions in the past, but each time there is a new twist. It is a very large pool we are all fishing from, and there is plenty of business for us all.

I am so glad to be a part of this website with so many helpful and knowledgeable people who are willing to share and compare. Thank you all for your comments. Keem em coming.

Jan 26, 2008 07:43 AM
Benjamin Smith
Apex Appraisals & Consulting - Powder Springs, GA
Atlanta Area Appraiser

The problem is that so many appraisers never did what they were supposed to do in the first place. You state that appraisers now "must do so much more research, so much more detailed comparison of not just recent listed and sold comps, but also trends." This is nothing new and should have been done the whole time. New appraisers that entered the profession over the past few years, did so without the luxury of adequate training or enough of a voice on ethics. They were often taken advantage of and pressured by their clients to do things faster and cheaper, cutting corners, inoring the thorough analysis and just giving up the predetermined value that was requested.

Jan 26, 2008 04:03 PM