Elements of a Home Appraisal

[Annemieke Roell]

Originally Posted by SmokyMtnGal

I spoke with the lender and she said that there are just some weird appraisers out there and, like any profession, some are friendlier than others. She asked if I wanted to pursue it further and I said no. She wasn't pleased with the appraiser from the standpoint that the report was due by Tuesday and she didn't get it until today. However, it came in higher than I had anticipated! Great news.

For some reason lenders seem to feel entitled to set the "due dates" for reports. The appraisal is done when it is done: when everything has been researched thoroughly, the data verified and confirmed and the report written. Not a moment sooner.

There are many appraisers out there who cave to that pressure which is why there are so many lousy appraisal reports floating around.

[Annemieke Roell]

Originally Posted by chet everett

Also glad to here that the thoroughness of the appraisal was not for naught. If there were fewer "drive by appraisals" or worse "electronic sales data appraisals" my gut tells me there would have been a lot less hot air in the R.E. bubble...

Don't know what an electronic sales data appraisal is, but a "drive by" is very similar to a 1004. The only difference between the 2 is that with a "drive by" the appraiser does not measure the house of does an interior inspection. All the research etc is the same.

[Beretta]

Originally Posted by goodbyehollywood

All's well that ends well! I'm talking with my lender about a refi and they said they'll probably do a drive-by. Not sure if that's good news or not. Were you able to lock a good rate?

I think so, we locked in at 5 1/4. The remodeling continues here and I'll keep dreaming of my building my next home "someday".

Originally Posted by Schousse

For some reason lenders seem to feel entitled to set the "due dates" for reports. The appraisal is done when it is done: when everything has been researched thoroughly, the data verified and confirmed and the report written. Not a moment sooner.

There are many appraisers out there who cave to that pressure which is why there are so many lousy appraisal reports floating around.

Well, since she had the job for two weeks I think that was ample time to prepare the report. I mean, there isn't that much activity to research in this area.

Also, I think my post was misleading on calling the lender about her behavior vs getting the appraisal. I called the lender to discuss her behavior on a Tuesday and then the appraisal itself came back on a Tuesday. I didn't decide to not pursue reporting her further because the appraisal came back ok. Sorry if I was misleading.

[Annemieke Roell]

Originally Posted by SmokyMtnGal

Well, since she had the job for two weeks I think that was ample time to prepare the report. I mean, there isn't that much activity to research in this area.

How do you know? Are you familiar with the appraisal process? I have had residential files that took over a month to research, analyse, verify and write.

[Beretta]

Originally Posted by Schousse

How do you know? Are you familiar with the appraisal process? I have had residential files that took over a month to research, analyse, verify and write.

Don't get smarty pants with me. I did ask the appraiser if she was busy and she said it was starting to pick up but that she only had 3 referrals in the past month. I can tell you that with what I paid for the appraisal if she is doing one every two weeks she is gonna be going hungry! There is a set of reasonable expectations here and common sense prevails. You don't go to the dentist for a root canal and expect to spend the night just because it is a tough one. Good grief. Please don't get defensive; you get more with honey than vinegar. Be nice and educate people about appraisers; don't put them off.

[Goodpasture]

Originally Posted by SmokyMtnGal

Don't get smarty pants with me. I did ask the appraiser if she was busy and she said it was starting to pick up but that she only had 3 referrals in the past month.

Actually I am not surprised at this. I find that people that want to know "how busy I am" seem to be busybodies and I rarely discuss anything serious with them. I sure as hell don't discuss my workload with them. In fact, I'm surprised she talked to you about anything.....you are not her client, and FIRREA and USPAP prohibits discussing anything about the assignment with anyone but the client. And two to three weeks is about standard for what I do.

Originally Posted by SmokyMtnGal

I can tell you that with what I paid for the appraisal if she is doing one every two weeks she is gonna be going hungry!

Of course you are assuming she is doing one at a time and you are assuming that what she charged you is what she charges everyone. Our staff covers a lot of territory so when we go to an area we try to do more than just drive out, see a property, and return to the office. We try to accomplish several tasks at once.....and we frequently charge some clients additional fees for the PIA (Pain in the A**) factor.

Originally Posted by SmokyMtnGal

There is a set of reasonable expectations here and common sense prevails.

What you consider reasonable may or may not be realistic. And common sense would seem to dictate that making assumptions about what a professional is doing when little or nothing is known about that professions procedures and rules would lend itself to erroneous assumptions. I rarely promise anything in less than a week, I quote a minimum of two weeks, and it can take as much as a month or more to finish an appraisal. Believe it or not EVERY bit of data on the appraisal must be verified. This includes the sales price, concessions, square footage, dates of sale, bathroom counts, amenity differences of not only the subject, but of every comparable used and every potential comparable not used. In a market where there haven't been many sales we have to justify why we used the comparables we used. We must determine the contributory value of significant differences. If there are differences, are they significant? If they are significant, is there a market response to that difference? In today's market we also have to look at historic sales....what did similar houses sell for last year? 6 months ago, last month? is the trend a declining market or is it an increasing market? If it is changing at all, at what rate is it changing? Have prices remained stable? Have they increased or decreased? How about Days on the Market? is marketing time greater or less than it was a few months ago, a year ago, last month? Are there any economic trends suggesting a change in the economic base? If so, what is the impact on housing in general and the subject specifically? What kind of housing inventory is there? Using disaggregation and segmentation, is there a potential market for the house? Because a lot of the information we obtain we have to have verified by a MINIMUM of two sources, one of which should be disinterested in the transaction, and all of those capable of providing verification are not on my schedule, they get back to me at their convenience, so it takes days and weeks to locate the appropriate information and verify it's integrity. So your "reasonable expectations.....and common sense" may not apply, and in all likelihood does NOT apply.

Originally Posted by SmokyMtnGal

You don't go to the dentist for a root canal and expect to spend the night just because it is a tough one.

Nor do you go to a dentist and expect him to get it done in a couple of hours if you have additional problems to deal with. YOUR expectation doesn't mean squat when he puts his career on the line. He takes the time to do it right....he is the professional, not you. He takes the time HE feels is required.....and yes, some dentists require you to go to the hospital where you might very well spend the night. Not all procedures can be done as an outpatient. He does it to HIS expectations, he follows the rules that apply to him, not you, and he knows that if he doesn't follow HIS procedures you can and very likely will sue him, put him out of business, and bankrupt him. He does it HIS way and according to HIS schedule, NOT YOURS. So do I, as does any professional and competent appraiser.

[Beretta]

Thanks again for all of the thoughtful replies. My questions have been answered, the appraisal came in higher than I had dreamed, and all is well. As my lender said, not everyone is as friendly as we are. Merry Christmas Everyone!