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Real Estate Chaos Hits Appraisal Industry

The following is from the San Franciso Chronical but it’s happening here too. Because some lenders are declining appraisals, some mortgage brokers recommend that buyers leave their financing contingencies in place until the lender has signed off on the appraisal. Or, get an appraisal before you list your property so 1) you’ll price it right out of the chute, and 2) reduce the chances of the property falling out of escrow because of the appraisal.

“As a result of the current market and a return to proper underwriting guidelines, appraisers are finding it increasingly difficult to get lenders to accept appraisals. Some lenders even are declining low appraisals and scrutinizing loan applications more carefully than in previous real estate cycles. Whereas most lenders used to evaluate a home appraisal’s credibility based on comparisons generated from their desk, now some banks are requesting that appraisals be verified by on-site visits to the property, as well as the nearby homes listed as comparables.”

Read the article here

Written by Keith Byrd - Go to Keith's Website/Profile