Appraisals - a guide


One of our favorite appraisers in the South Bay Sonja Troncoso has a short concise guide on the appraisal process
here.

Appraisals are the key to lender due diligence and to confirm accurate valuation for a home buyer. The appraisal is generally ordered by the mortgage broker or lender, who choose appraisers based on quality and speed of service. New home buyers and borrowers are often surprised at the turnaround times.

Sonja provides some points about what a good appraiser should do -

1) After the appointment is scheduled, the comparables are pulled and
Assessor & MLS adjustments are evaluated before the visit. Appraiser should ask
the borrower about the condition of the home ahead of time for more accuracy beyond the "comp check."

2) Appraiser should visit the property within 12-48 hours whenever possible. Appraiser should email / communicate with the client at order reception, when appraisal is scheduled and a promised delivery date/time. Appraiser should have the report ready 24 hours after visit. Fees for faster turnaround are generally assessed.

3) Appraiser should have "no surprises" policy. If the appraisal value looks lower than order expectations, the appraisal visit is stopped, the client is notified immediately for reevaluaion of the LTV and terms prior to the visit. That way, the borrower is assured that money is not wasted on an appraisal that does not meet expectations.

4) Appraiser should be approved with Landsafe, GAC, and other appraisal management companies.

Sonja Troncoso
[email protected]
http://www.hillsideappraisal.com



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