Why ALL Lenders Must Pay Appraisers Extra and Promptly!


    An agent we know well recently referred another loan officer to us to get advice in regard to how to finance a Site Condo (a stand-alone unit on a condo lot) he had listed.

    The loan officer was having great difficulty obtaining financing for her client/buyer, so the agent wanted us to give her some insight.

    Her biggest issue it turned out was her inability to find an appraiser. This is b/c site condo appraisals require a lot more work and she was not offering a premium.

    She also did not have an Appraisal Manager who was able to speak directly with appraisers to provide advice as to how best to do the appraisal accurately and compliantly.


    This is a huge issue during every refi boom! Because appraisers are inundated with orders, they are able to cherry-pick and only take the orders they want to do.

    The solution for lenders is this:

    1. Pay extra for every appraisal. This can be done with “rush fees,” premiums, and by making sure the entire appraisal fee goes to the appraiser and not to an appraisal management company!
    2. Pay promptly for every appraisal. Appraisers love to work with us b/c we go out of our way to pay on time!
    3. Have a skilled Appraisal Manager who speaks fluent “appraiser.” Appraisers hate dealing with loan officers and admin people who do not understand appraisal guidelines. I get “love letters” daily from appraisers telling me how much they LOVE dealing with our Appraisal Manager, Jennifer, simply b/c she speaks their language and knows their needs.
    4. Build an internal panel of super-powered appraisers. Our internal panel is the best in the business b/c we pay extra, we pay promptly, and we have Jennifer; appraisers want to appraise for us in all markets!

    I beat the “appraisal panel” dead horse all too often, but its importance cannot be overstated.

    We now have 1/10 the number of appraisal issues that we had during our broker days when we were unable to use our internal appraiser panel and instead had to order appraisals from huge appraisal management companies.

    If a lender is vying for an agent’s business in a hot market, one of the agent’s primary concerns should be that lender’s appraisal policies and panel.

    We might still be brokering but for ALL of the appraisal issues we had.

    Jay Voorhees
    Founder/Broker | JVM Lending
    (855) 855-4491 | DRE# 01524255, NMLS# 310167

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