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Have not read everything above so I apologize if this has already been addressed. If you are refinancing an FHA loan the appraisal is and will be attached to that address for I believe 6 months. I believe ( I say that because I get my info from a second hand person - a knowledgeable loan officer) that this system is in place now to make appraisal shopping a thing of the past. Again this is regard FHA only...
The most important criteria for comps is proximity to the subject property, Similarity to the subject property, and recently sold.
Bracketing is one additional indication that an appraiser picked good representative comps.
Underwriters like to see it.
Shows the appraiser didn't cherry pick from the available comps.
By Bracketing I mean that if possible, within the comps that meet the above criteria of proximity, similarity, and time, there would be one sold comp of lower price, one sold comp of comparable price and one sold comp of higher price.
Makes underwriters feel all warm and fuzzy.
And to get back to my main point.
The appraiser picked the comps for a reason.
Proximity, similarity, and time.
Which means that any other appraiser is going to be using these same comps.
And allowing for the subjective nature of an appraisal the most you can expect is plus or minus 1% or 2%.
I know because we just went through a transaction where the appraisal came in low.
Bracketing is not necessarily a sign of a good appraisal. In our practice we do a considerable number of reviews and I cannot tell you how many times an appraisal report did not pass because less appropriate sales were used over better sales for the sake of bracketing.
Yes, Underwriters like to see it, which makes it an Underwriting issue, not an appraisal issue. As an appraiser, my concern is to produce a solid, well supported report.
Have not read everything above so I apologize if this has already been addressed. If you are refinancing an FHA loan the appraisal is and will be attached to that address for I believe 6 months. I believe ( I say that because I get my info from a second hand person - a knowledgeable loan officer) that this system is in place now to make appraisal shopping a thing of the past. Again this is regard FHA only...
Appraiser shopping has never been acceptable. It is just recently that this is being enforced.
i'm refinancing my mortgage and the appraisal has come back significantly less than expected and my ltv is 90%, which means i'm paying mi (i'd rather avoid this!).
i've been talking to two banks about the refinance and had chosen the one to go with, hence the appraisal. now the second bank is suggesting i pay for their appraisal in the hope that their appraiser will find more value. "for $385, you might as well roll the dice, you could save yourself a lot of money." to be fair he has found some comps that appear to suggest the first appraisal might have been a bit conservative.
does anyone have any thoughts or comments? my initial reaction is that it's a waste of money. can there be material differences between two appraisers?
You need to find out if your current loan is owned by Fannie or Freddie. If you don't pay MI now, you can refinance at 90% and still not pay MI. I call it the Obama refi, but it is more technically called the Making Homes Affordable program.
Appraiser shopping has never been acceptable. It is just recently that this is being enforced.
I just wanted to clarify that at no time did I say appraisal shopping is or was acceptable. Just that there is a system now with FHA loans that attached appraisal so it literally cannot be done. Beyond that there are certainly issues with the current system and what seems to be over-compensating to the other extreme. I am not saying I have any answers but the appraisal part of this equation is a tough one to deal with...
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