All of us are fully aware of the recent changes in the appraisal industry.¬† Another victim of yesterday‚Äôs market, there is now a ‚Äúhands off‚ÄĚ 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, it‚Äôs my understanding that Bank of America uses a third party company to set up appraisers‚Ä¶whereas some of the more local lenders are able to ‚Äúselect‚ÄĚ 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.¬† 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.¬† The names, location, and exact pricing have been changed to protect the innocent‚Ä¶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).¬† After a round of negotiation, the seller accepted an offer for $1.375 million.¬† The lender for the buyer was a large, national company.
Although I asked the buyer‚Äôs agent to let me know when the appraisal was scheduled, the lender did not¬† keep either of us in the loop (perhaps he couldn‚Äôt‚Ä¶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