The 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 the high-end Bay Area community of Orinda.
The lender required us to order appraisals through a nationwide Appraisal Management Company (AMC) that kept most of the appraisal fee and paid very little to the actual appraiser. As a result, no experienced local appraisers would take our orders.
The appraiser who finally accepted the Orinda assignment lived almost 100 miles away in Modesto. He knew nothing about Orinda — and it showed.
His appraisal came in $200,000 below value because he used comparable sales from across the freeway in a much less desirable neighborhood. It was a textbook example of negligence.
We immediately appealed the value, but the AMC dug in its heels and refused to budge. We lost the transaction after wasting hours on the appeal — a devastating outcome for everyone involved.
Unfortunately, this wasn’t a one-time event. It happened repeatedly when we operated in the Broker Channel, and it became one of the main reasons we transitioned to the Mortgage Banking Channel.
For purchase-oriented mortgage companies, access to the best local appraisers is not a luxury — it’s a necessity.
The Appraisal Success Story
Fast-forward to today.
Just last week, we had an appraisal come in $45,000 below the contract price. Our Realtor partner disagreed with the valuation and immediately reached out to our Appraisal Manager, Beau McGlasson.
Because Beau knows appraisal guidelines better than most appraisers, personally knows every hand-picked appraiser on our panel, and understands our markets inside and out — he was able to take action immediately.
He reviewed the data, gathered additional comps from the agent, and communicated effectively with the appraiser. Within just a few hours, the value was adjusted, and the transaction was saved.
That kind of turnaround is not luck — it’s a direct result of having a dedicated, highly skilled Appraisal Manager and a curated local appraiser pool.
The Role of an Appraisal Manager
We love the Mortgage Banking Channel not just because we can use our own vetted local appraisers, but also because we have Beau — our in-house Appraisal Manager.
He ensures quality, consistency, and fairness on every single report. Without him, we could never deliver the fast, reliable service our partners expect.
So here’s the question every Realtor and borrower should ask before choosing a lender:
👉 Does your lender have an Appraisal Manager?
If not, you may be risking more than you realize.
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