The new rules for ordering home appraisals [for mortgage purposes] was established quite a few months ago. The rules were included in the Home Valuation Code of Conduct (HVCC). There are some major factors included in this guideline created to establish an untainted appraisal. Meaning the loan officer who is working on the loan is no longer allowed to order the appraisal or have any contact with the person who actually did the work. There are several problems and issues arising out of these.

In all fairness, the administration and powers that be are looking into making some changes to the standard. I just want to point one out on this rainy Saturday in New York, because all parties involved can act on this. When the appraisal is ordered, it is sent to an appraisal management company. That company then distributes the order to an appraiser to take the job. Often the jobs are distributed on ups basis. Think of the next car salesman up to take the next customer that walks in the door. This is fine with cars, but appraisals are a little more sensitive. The appraiser may not be located in the proper area where the property is located or even familiar with the type of property. Appraisers are not only licensed and trained in performing their task, they are also familiar with area based on experience. When an appraisal is done by a person who is out of area, they cannot properly find comparable sales or provide proper information on the subject property. How can a person possibly obtain detailed information on a property 100 miles away from where they live and usually work? They cannot. We see now that many appraisals are coming in much lower than the purchase price and deals are dying all the time. This is part of the [many] problem that is keeping the real estate market from getting back on their feet. Â Here is what the consumer, their attorney, realtor and loan officer can do. If an appraiser comes in much lower than the purchase price, the first thing to do is find out where the actual appraisal is from. Where do the live and where have they been working all this time. Are the established and familiar with the area and property type? Are the qualified to service this area and come up with an educated appraisal not an educated guess? If they are from out of the area, then the appraisal may be disputed based on this alone. The regulations state the appraiser must be qualified to perform his duties. If not, fight to get the appraisal thrown out and reordered from someone who is. In all fairness, they are working on this, but until then why should you be a victim of this sloppiness?