30 Aug Helpful Tips when Appraisers are Booked Out

Since Brexit, interest rates have generally trended downward which have caused many homeowners to refinance their homes due to three-year lows in mortgage rates. While  this is great and keeps us busy with work, most appraisers are now flooded and booked out beyond normal turn times.

Regarding lender work, the general process is we quote a fee and turn time, and if accepted, the lender or AMC (appraisal management company) will order the appraisal. We then call and schedule. Because of the increase in refinance appraisals, scheduling purchase appraisals are at times later than normal. My company has been booked out two plus weeks and that includes taking on more work than normal conditions.

I know from talking to agents that this has been a concern when an appraisal is scheduled two vs. one week away, especially since escrow has closing and contingency dates that have been agreed upon.  Below are some tips for agents to hopefully help the process until we return to normal turn times.

Tips for Agents-

1) If feasible, ask for a 45 day versus 30 day escrow to allow more time for inspections and the appraisal to be completed before contingency dates expire. The extra 15 day buffer will allow all parties to have a little breathing room.

2) If a longer escrow is not feasible, ask for a longer appraisal contingency deadline. I think agents generally have a gut feeling and concern if the contract price may have appraisal issues. If this is so, discuss the appraisal contingency date beforehand and plan ahead with your options if the appraisal value is below contract price.

3) Talk to the lender upfront about ordering a rush appraisal. Occasionally there will be a last minute cancellation and an opportunity to slot an appraisal immediately which would be perfect for a rush appraisal.  I know I have personally experienced this over the last two months on a few occasions.

4) Since there is time between when the appraisal is ordered and when the appraisal inspection takes place, make sure all lender requirements are completed to avoid any unnecessary repairs such as carbon monoxide detectors on all levels and basement, smoke detectors installed and earthquake double straps installed on water heaters. This may be obvious by now,  however on occasion, I still come across homes with only one carbon monoxide detector installed on two levels homes and missing double straps.

One other health/safety issue that I see occasionally is missing deck and stair railings. This is a repair that can also be easily avoided with addressing prior to the appraisal inspection. Any repair should be permanent installation of railing.

Avoiding these repair hiccups not only saves escrow time when trying to close but monetary savings as well to your client.

If any agents have any thoughts or tips, I’d love to hear your opinion!

In closing, as long as mortgage interest rates remain in the 3’s, I expect the fall to continue to be busy. It’s been a very busy last 2 months and hope all can take a moment and enjoy some time away from work over labor day weekend.

Disclaimer: All information deemed reliable but not guaranteed. The information is meant entirely for educational purposes and casual reading only and is NOT intended for any other use.  This information is NOT intended to support an opinion of value for your appraisal needs or any sort of value conclusion for a loan, litigation, tax appeal or other potential real estate or non real estate purpose. This appraiser is NOT a qualified home inspector and any tips are for informative purposes only. If you’d like to obtain and order an appraisal for your specific needs, please contact Bryan at 530-878-1688 for more information.