APPRAISAL HORROR STORY
Back when we were in the Broker Channel (when we sent loans to outside lenders for underwriting), we ordered a purchase appraisal in a high-end Bay Area community called Orinda. The lender forced us to order appraisals through a nationwide Appraisal Management Company that kept most of the appraisal fee itself and paid very little to the actual appraisers. As a result, no local appraisers would accept orders.
The appraiser who accepted our Orinda order lived almost 100 miles away in the Central Valley town of Modesto. He knew nothing about Orinda. His appraisal came in $200,000 low b/c he correlated entirely to comparable sales from across the freeway in a vastly inferior neighborhood. It was a shocking example of negligence.
We of course appealed the value to the Appraisal Management Company, but they dug in their heals for some unknown reason. We wasted hours and hours on the appeal and lost a transaction. It was extremely upsetting to say the least.
What made matters worse is that this story repeated itself time and again when we were in the Broker Channel, and it is a primary reason why we left Brokering for the Mortgage Banking Channel.
For purchase-oriented mortgage companies – access to the best appraisers in the industry is not a luxury; it is an absolute necessity.
APPRAISAL SUCCESS STORY
Last week we had an appraisal come in $45,000 under contract price, and our Realtor partner thought the value conclusion was inaccurate. She contacted our Appraisal Manager, Beau McGlasson, and provided additional data.
B/c Beau knows appraisal guidelines better than most appraisers, b/c he knows all of our hand-picked appraisers personally, b/c he knows every neighborhood we work in, b/c he knows how to find and interpret data with amazing skill, and b/c he is an extremely skilled communicator – he was able to get the value adjusted and save the transaction within a few hours.
We love the Mortgage Banking channel not just b/c we have our own pool of hand-picked appraisers, but also b/c we have an extremely knowledgeable and skilled Appraisal Manager. Without one, we could never come close to promising our extraordinary level of service.
Does your lender have an Appraisal Manager?
Jay Voorhees at (925) 855-4491
Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646