Good afternoon all! You may have seen this trend already in your neck of the woods. Up here, I'm starting to see practically every appraisal submitted get questioned. Not necessarily are the lenders requiring new appraisals or reviews but it definitely throws a kink into things.
Today I got an email from my underwriter questioning an appraisal for one of my clients. This is after I checked value ahead of time. The bottom line is we need to order a second appraisal. Obviously the client isn't thrilled but needs to refinance. This follows another appraisal done recently where it was questioned because the adjustments on the comps. were too big!
I haven't been in this business that long (3 years) and have never had an appraisal questioned until recently. I think it's a sign of the times. Just when we think there's a little daylight there's another hurdle to get over. If you're an appraiser, understand these times too shall pass. I know you're working extremely hard to get your reports done in a timely manner and I appreciate it. Don't get too frustrated if your report is questioned or reviewed. I expect this trend to be commonplace in the neat year. Let me know what you're seeing out there and for everyone's sake check value ahead of time if possible! Have a great day!
Paul McFadden
I just had an incident with appraisal reviews and saw a very conservative appraisal discounted by 10% for no apparent reason then other down market
Interesting post! Good information to know.
Please remember me if you learn of anyone moving to "The OC" and I will do the same!
Michael Caruso, Broker ABR ABRM CRB CRS GREEN GRI
2007 President, Orange County Association of Realtors
(949) 753-7900
Paul - We are seeing two appraisals on the case file and in some areas the properties are not appraising for the contract sales price. We are in a "slow" growth area so we are getting hit twice as hard on the buying side as well as the selling side.
Laura: I think it's going to be an interesting year. My hope is the lenders will accept the appraisal even if it has to be reviewed which costs extra. If appraisals start to get cut, we've got a problem. It may mean we go right down to the wire and the deal falls apart.
Michael: Thanks for your comment. I appreciate your sentiments and am glad I found you here. Let's stay in touch. You never know!
James: I'm sorry to hear that. It may be a sign of the times for the near future. I perosnally hope not. I had never had an appraisal questioned and now have had two in a row! It makes one a little gunshy! Take care.
Wow, you've got a lot of white space at the bottom of that post!
Paul, gald to see you back for starters. I am convinced that the arket is going to be a little wonky for the next 12 months or so. We have got to start seeing inventory movement before we get any traction on mortgages and lenders are going to protect their interest before they staart writing checks again...IMHO'
Bo
Anne: Yes, I agree. I don't know what happened!
Bo: I think you're right. Business is good now and we'll obviously take it. But I don't think we're through all the bumps just ye! Take care.
Hey, Paul.
To get rid of the white space, edit your post. Then click on the HTML tab. Then scroll to the bottom of your post. You should see a lot of lines that look like this:
<p> </p>
</span>
</div>
Each one of those basically enters two lines of white space. Basically you can delete all the code after that first <p> </p> after your text.
Paul...
Yes, we're seeing transactions being held up for 2nd appraisels in escrow. And, my underwriter friends were all so much under pressure to push loans through during the hi-times, and now they're pressured trying to find their way through the maze of new rules and strict regs, and everyone seems in fear of doing something wrong. I hope it all settles down and normalizes (if one can say that now) soon. It is pretty mirky waters right now, isn't it.
Rene'
Russel: Thanks for the tip! I'll see what I can do. Take care.
Rene: It's a little scary right now. It just goes to show all of us that we're not through it yet. Eventually we'll hit better times althought it may be next year at the earliest. Hang in there!