Real estate agents and loan consultants often go through countless appraisers trying to find an appraiser they can trust and use on a regular basis. One may wonder why it is so difficult to find a trustworthy appraiser. There are likely many answers, but perhaps one of the main reasons is that with the real estate boom of the late 1990s and early 2000s, many new appraisers entered the market. Those appraisers often lacked the proper training, experience, and work ethic. This article serves as a guide to finding the right appraiser, one with whom you can build a long-term working relationship.
Here are the 7 things to look for in an appraiser:
1) Is the appraiser licensed in the state where the appraisals will take place? You will be surprised how many appraisers work without being properly licensed/certified. Banks will always reject appraisals done by unlicensed appraisers.
2) Ask the appraiser about his background. Has your license ever been suspended? Have you been released on probation? Is your license currently active or has it expired? These are all very important questions to ask and one should not be shy about asking such questions.
3) Are the appraisal reports completed by a licensed appraiser or by a staff member who just enters data and has no appraisal background? Just as it is important that the appraiser do a personal inspection of the property, it is even more important that the appraiser be the person responsible for completing the report.
4) What is the delivery time for appraisal reports? A turnaround time for appraisal reports is the amount of time it takes for the appraiser to prepare the report from the time of inspection. A response period of more than 3 days is considered too long, especially given the current market situation. A 3-day lead time is acceptable, however 24-48 hours is ideal.
5) How much does the appraiser charge for his services? Appraisal fees must not exceed $350 for condominium or single family residential units. Some appraisers will try to get away with charging up to $400, however paying more does not necessarily translate to getting a better product. Appraisal reports are completed in accordance with strict USPAP guidelines, therefore all appraisal reports are created in the same format and using the same information. It’s just that some companies will try to get away with charging more. Truly innovative companies will take advantage of today’s technology and be able to offer you a superior product at a better and more competitive price.
6) Does the appraiser take advantage of current technology? Online ordering helps save valuable time and innovative websites allow customers to order online, track orders and even print reports directly from the website. Today’s technology has made the appraisal process completely digital, from placing orders online to taking digital photos during the inspection process, to finalizing and posting appraisal reports.
7) How credible and reliable are the statements made by the appraiser? This is the hardest part of deciding whether or not to entrust your work to the appraiser, however, his first instinct is always the best. What I have learned is that truly trustworthy and credible appraisers will always keep their job. Look for companies that offer guaranteed results and will always deliver on their promises. Companies that offer you a money-back guarantee if reports are not completed in a timely manner are a great way to go. Your work is usually consistent and it is likely that you will go the extra mile to keep you happy.