The new appraisal requirements invented and regulated by someone in government is basically the same old same old. The big change is that the appraisals are done blindfolded, take longer and cost more.

 

As discussed in a prior blog entry, we now have to order appraisals blindly through a round robin system which instills a “no direct contact” rule between loan officer and the appraiser. So, we have no choice to do this….. We have already done about a dozen appraisals in this manner, per the instruction of our lenders. I have listed some observations below:

 

·         The appraisal cost about $150 more for the borrower

·         They take about one week longer to get back

·         The appraisals are being done by people outside of the geographic area of the house and thus are not familiar with the neighborhood

·         There are more mistakes made in the appraisals

·         We need to contact the management company directly, which in turn contacts the appraiser to correct the [stupid] mistakes. This takes about 3 days more to complete

·         All the appraisals are coming in lower [value] than we ever expected- even the ones that are not in declining market areas

·         The banks review the appraisals and rip them apart, asking for more information and additional comparable sales to be included

·         This takes 3 more days

·         The banks make us order the appraisals through their designated appraisal companies and then reject them- like rejecting your own child!

·         The appraisals are being done by professionals we have known for years, whom we cannot speak to, whom are making ½ the amount of money for doing twice the amount of work

·         Nobody is happy

·         The clients lose out

 

Where is the logic in this “new and improved” system?

 

 

 

 

 

Dale Siegel