Appraisers are licensed, trained professionals whose fees are determined by the scope of work and the complexity of the appraisal assignment. The more complex the property, the more time the appraiser must employ inspecting, researching, and developing their opinion of value which must be presented in a well written appraisal report.
Valuation Management Group requires that commercial appraisals must be completed by a certified general appraiser. Generally, all commercial appraisals are bid out to a group of appraisers that are considered competent to complete the appraisal assignment. On appraisals that are being prepared for a very large loan, the client may request that MAI only appraisers be selected to bid on the assignment. An MAI is a designation that certified general appraisers can work to obtain from the Appraisal Institute.
Most Valuation Management Group clients have preferred appraisers who are approved to receive bid requests. If an adequate number of bids are received, bids are typically closed within one business day and the client specialist notifies the client of the bids received. If an adequate number of bids are not received, the client specialist will work with the client to determine the best course of action. The quoted fee, turn time, experience, and competency are all considered before engaging an appraiser.
Complex residential appraisals are typically sent out for bid, also. Since TRID was implemented in October 2015, most VMG clients are obtaining bids on complex residential orders prior to preparation of the loan estimate (LE) to ensure the appropriate fee is quoted on the LE. The appraiser is not engaged until the lender gives the approval to proceed. If a residential property has one or more of the following attributes, the property is most likely complex and should be put out to bid:
- Rural markets
- Historic properties
- Manufactured or modular homes
- Unique designs such as berm or dome homes
- Significant deferred maintenance
- Gross living area of over 3500 square feet
- On golf course, lake, river, beach or mountains
- Has an apartment, in-law suite, or other accessory unit
It is important to consider that complex properties require more time and expertise by the appraiser. Not all residential quotes obtained exceed the typical fee for the market; when in doubt request that we bid the order out to ensure the appropriate appraisal fee is obtained and quoted on those properties with unique or atypical attributes.
Valuation Management Group works to ensure our clients obtain appraisals completed by competent appraisers in a timely manner at reasonable fees.
Valuation Management Group is a national, full service appraisal management service company that manages the appraisal process for financial institutions, banks, mortgage bankers and credit unions. We offer the full array of commercial and residential appraisal products and services. We take the appraisal process from ordinary to extraordinary.