By Alison Hamilton | Oct 24, 2016 | QuickenLoans.com
If you’re looking to buy or sell a home and don’t have much knowledge about the appraisal process, now is the time to learn more. To help you understand the home appraisal industry, we’ve compiled some information on what a home appraisal is, what to expect from the process and why getting an appraisal in rural areas can sometimes take longer than in non-rural areas.
How exactly is an appraiser selected? A lender selects an appraisal management company (AMC) to work with. The appraiser will come to your house to make sure that the value they’re putting in the appraisal is accurate.
According to Tal Frank, who has worked in residential lending for 20 years and is the president of PhysicianLoans of Ohio, when the appraiser completes the report, it will be sent to the AMC for review. If there are mistakes, corrections are made by the appraiser. Once approved, the appraisal is sent to the lender, which then reviews the report. If there are any errors in the report, it will be sent back to the AMC for changes. If it’s good to go, the lender will deliver a copy of the report to you.
“The number of appraisers in the U.S. has decreased by 20% between 2007 and 2015, according to the Appraisal Institute,” says Frank.
What can home buyers or sellers do about this? The best thing you can do is to start your house hunt sooner and be prepared for some delays.
“The longer answer is that the professionals in a transaction, the real estate agents and the loan officer, need to be on the same page and set the proper expectations with their clients for the appraisal turn time,” says Frank. “Buyers should start their home search earlier if possible and sellers should allow for more time to close once under contract. As long as all parties anticipate the challenge in advance, it will really not be that big of an inconvenience.”