All of us are fully aware of the recent changes in the appraisal industry.Â Another victim of yesterdayâ€™s market, there is now a â€śhands offâ€ť message that lenders take very seriously.
What I have observed is that the bigger the lender, the more distance that exists between loan officers and appraisers.
For instance, itâ€™s my understanding that Bank of America uses a third party company to set up appraisersâ€¦whereas some of the more local lenders are able to â€śselectâ€ť a pool of local appraisers thru whom they can rotate business.
As a listing agent, I have found that my input in this new climate is crucial.Â My job is not to influence, but to educate.
In a couple of instances, I have opened the door for appraisers who were clearly outside of their geographical comfort zone and the information and comps I have provided were important in verifying a clear market value.
A recent experience clearly confirmed the need for listing agents to meet with appraisers.Â The names, location, and exact pricing have been changed to protect the innocentâ€¦but, otherwise, this is a 100% true story.
In September, I received an offer on a condo that was listed for $1.45 million in Georgetown (three cheers for Georgetown, right? But that’s another story of market holding strong).Â After a round of negotiation, the seller accepted an offer for $1.375 million.Â The lender for the buyer was a large, national company.
Although I asked the buyerâ€™s agent to let me know when the appraisal was scheduled, the lender did notÂ keep either of us in the loop (perhaps he couldnâ€™tâ€¦because he, too, was not in the loop) and, because the building had a concierge, the appraiser did his on site inspection without giving me notice. Continue reading this post