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Almost all are here in our area are not only licensed and covered by E&O, but also bonded........and the big box banks have extended coverage for anyone appraising on their behalf. You may not have an individual policy, but the banks have the coverage, as do many of the AMCs.
Lock up the house?! This is for a refi. They don't have keys to my house. And also the guy called to make the appointment. I guess he wants one of us here...
I missed this was a HARP - but on a regular refi, the overall mechanics of the house and any work done to the house, including improvements come to light, same as if a purchase. I don't do HARPs, so I don't know how tight the scrutiny. I've had more than one homeowner become a Chatty Kathy with the appraiser.........thinking they are helping the cause, only to find out the results of their conversation have resulted in additional certifications (structural or trade related, in some cases, county) or repairs, but also suspected lower values. My latest example of this was a home that the homeowner had remodeled himself, almost 12 years ago, but did not pull a permit. Yet, he couldn't resist bragging about it......and the appraiser found no permits were pulled. The appraiser even said himself (to the AMC) if the home owner had just shut up......but he could not ignore the comments and had to report. We found this was easier to just let the appraisal expire and order a new one -
Then there was the homeowner that bragged about building his deck.....
If the place looks very nice and well maintained he may assume the entire property is in better condition than one that is run down and give you the benefit of the doubt if the appraisal if close.
Almost all are here in our area are not only licensed and covered by E&O, but also bonded........and the big box banks have extended coverage for anyone appraising on their behalf. You may not have an individual policy, but the banks have the coverage, as do many of the AMCs.
I've gotta admit that I've been an appraiser since 1983 and have belonged to a major appraisal organization, etc.. I have never even heard of an appraiser being bonded. And for the many banks, AMC's, lenders, etc.. None have ever mentioned being bonded or offering to bond an appraiser. If you have general liability insurance, it's not necessary. Many appraisers I know don't even carry E&O insurance, since that is one thing that will definitely make you a target, should something go wrong.
I'll also say that my background is primarily in commercial real estate appraiser, but before I semi-retired, I did own a medium sized appraisal co. employing several residential and commercial appraisers that did lots of contract work for several federal agencies and large lenders. Some asked about E&O but we never got turned down for approval on their list by not having it.
I've gotta admit that I've been an appraiser since 1983 and have belonged to a major appraisal organization, etc.. I have never even heard of an appraiser being bonded. And for the many banks, AMC's, lenders, etc.. None have ever mentioned being bonded or offering to bond an appraiser. If you have general liability insurance, it's not necessary. Many appraisers I know don't even carry E&O insurance, since that is one thing that will definitely make you a target, should something go wrong.
I'll also say that my background is primarily in commercial real estate appraiser, but before I semi-retired, I did own a medium sized appraisal co. employing several residential and commercial appraisers that did lots of contract work for several federal agencies and large lenders. Some asked about E&O but we never got turned down for approval on their list by not having it.
BAC had a nice stable of in-house appraisers nationwide and I'm pretty sure when I was there, they were bonded.
FNMA guideline regarding photos required, went into effect 10/1/2010
• interior photographs, which must, at a minimum, include:
– the kitchen;
– all bathrooms;
– main living area;
– examples of physical deterioration, if present; and
– examples of recent updates, such as restoration, remodeling, and renovation, if present.
Basically, they don't trust appraisers and want to make sure they inspected the interior and correctly noted the condition.
I would make a list of any improvements you have made to the house since its purchase. And it couldn't hurt to mention any sales on your street that you are aware of.
It happened Tuesday. I had to work but DH was there with him. He said he measured the outside of the house and then measured a couple of the bedrooms. He tooks pictures of every room. The only thing we've really had a chance to fix up was the deck (replaced some boards and restained). We also found out the the god-awful tile counters in the kitchen were not original to the house. I had no idea that kind of stuff is in a record somewhere. Anyway, the second owner (we are the third owners) rented the place out and no one took care of that countertop. The grout was cracked and stained when we moved in. I cannot wait to replace it.
But yeah, DH said the appraiser was in and out in about 20 minutes, even in the pouring rain.
BAC had a nice stable of in-house appraisers nationwide and I'm pretty sure when I was there, they were bonded.
With state licensing and certification, as well as general liability insurance which many appraisers carry, there is no reason to be bonded and very few appraisers nationwide have ever been bonded. The only bond available would be a performance bond to make sure you finish the job if you're paid up front. General liability would cover you in case you broke their prize antique vase or robbed them. Nearly all recourse on complaints against appraisers is through the state licensing agency.
I had lunch today with 3 fellow appraisers, one of whom just got off the state licensing board as chairman. None had ever heard of an appraiser being bonded. We're talking almost 100 years of experience between the 4 of us.
It happened Tuesday. I had to work but DH was there with him. He said he measured the outside of the house and then measured a couple of the bedrooms. He tooks pictures of every room. The only thing we've really had a chance to fix up was the deck (replaced some boards and restained). We also found out the the god-awful tile counters in the kitchen were not original to the house. I had no idea that kind of stuff is in a record somewhere. Anyway, the second owner (we are the third owners) rented the place out and no one took care of that countertop. The grout was cracked and stained when we moved in. I cannot wait to replace it.
But yeah, DH said the appraiser was in and out in about 20 minutes, even in the pouring rain.
With state licensing and certification, as well as general liability insurance which many appraisers carry, there is no reason to be bonded and very few appraisers nationwide have ever been bonded. The only bond available would be a performance bond to make sure you finish the job if you're paid up front. General liability would cover you in case you broke their prize antique vase or robbed them. Nearly all recourse on complaints against appraisers is through the state licensing agency.
I had lunch today with 3 fellow appraisers, one of whom just got off the state licensing board as chairman. None had ever heard of an appraiser being bonded. We're talking almost 100 years of experience between the 4 of us.
But did any of you work for a big box bank? If you were independent, I suggest not. The OP is working with a WF, one of the big boxes.
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