by 20 Jan 2010
As we move into the new year, many of my appraiser friends are finding out that more and more of the appraisal work is being farmed out to appraisers willing to work for ridiculously low fees! No matter what the scope of work is! As a result of this, many Brokers are finding that the reports they are getting are terrible. Bad choices of comparables, adjustments not being made, or being made badly, values off 18% and more, etc. May I suggest that you engage the work of your appraiser that you use to use, prior to this HVCC mess. Many a Broker has lost a deal because of a poorly done appraisal, costing them thousands of dollars. Well, for the cost of an appraisal fee, you could enlist the help of your appraiser friend of many years to do their own appraisal, and then use it as a back up to dispute the AMC's appraiser. Remember, just because your appraiser friend's appraisal cannot be used in the loan, it CAN BE USED IN DISPUTING ANOTHER REPORT!! In fact, the report can be used in a court of law if necessary. Does this incur extra costs? Yes, but it may be the cure to what is ailing this industry since the inception of HVCC. What do you think? Any other solutions? Sincerely, Lamarr Banks


  • by admin | 1/20/2010 9:13:42 AM

    Lamarr - Well said, this would have made a great appraisal column in the magazine.

  • by Tim Bauer | 1/25/2010 12:24:58 PM

    Lamarr-- Great article! I look forward to reading more from you.

    Re: the problem of bad appraisals-- I like anyone else am always looking for the best deal, but I struggle with the same thing in my business-- people get a deal on an inferior product only to regret the purchase when it costs them far more in the long run.


Is TILA-RESPA a good or bad thing long term?