Topics for Appraisers to Avoid with Homeowners and Borrowers

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Conversation

During an inspection, it’s common for an appraiser to start a conversation with the property owner while viewing the property. It’s a natural situation when silence can be awkward. Occasionally, it can be helpful for the appraiser to be able to ask questions regarding the property, such as learning the date of recent repairs or renovations, if any.

The questions don’t always flow in one direction, though. Often, a homeowner has many questions and opinions for the appraiser during the inspection. This can be a tough situation to navigate as to what information is acceptable to share with the homeowner.

How much do you think my home is worth? This is a very common question asked of appraisers at a property inspection. It is understandable that a property owner is curious to know how much their property is worth or where the appraisal will value it. This is a topic the appraiser should, and usually tries to, avoid because they more than likely have not done the analysis yet.  Normally, a property inspection is performed early on in the appraisal process and the detailed analysis and comparison will take place after the appraiser views the property and becomes aware of the condition, functional utility, quality of materials, etc. 

When will I receive a copy of the appraisal? This question also comes up quite frequently. We are all impatient at times and not knowing pertinent information regarding a purchase or refinance transaction can be stressful.  Clients are asking VMG to share with appraisers the issues it can cause them when an appraiser tells a property owner when they are “turning in” an appraisal.  That sets an expectation with the client’s customer that everything will be “ready” as soon as the appraisal arrives.  And, as you all know, the appraisal must go through the review process at VMG and usually an internal review process by the client, as well as the underwriting process, which can take several days after a report is sent in by an appraiser.  The client’s customers get upset because they have an expectation based on when the  appraiser said they were  turning in the appraisal.  It is best to answer that question by indicating that their loan officer, account manager, etc., will have a better idea when they have all the paperwork together and are ready to share a copy of the appraisal.  Therefore, it is a good idea to avoid discussing delivery dates at all.

Valuation Management Group is a national, full service appraisal management company that manages the appraisal process for community banks, mortgage bankers and credit unions. We take the process from ordinary to extraordinary.

 

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