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Important information for lenders.  Appraisers in Connecticut are bound to comply with Uniform Standards of Professional Appraisal Practice.  Sometimes lenders are requesting values prior to placing an order.  Appraisers in Connecticut can not provide a value prior to due diligence and it is the law.  This is what is called a pre-determination of value which is not allowed.

What the lender must not do?

Request stopping an assignment if value is not coming into a specific value.

Not wasting the borrowers money or time if the value is not going to come in at a specific value.

Appraisers provide a valuable service and are paid for their expertise and analysis not the specific outcome of a reported value.   Appraisers do work long hours and have to complete ongoing training classes to keep current. 

Then what is a lender to do???

What can lenders ask to help them regarding local values?  Lenders may request raw data sales for the subject property area.  Appraisers may provide local websites that also assist in providing the lender a better picture without violating their regulations.  The homeowner can request a desktop valuation as a consulting assignment(This can be done if enough information is available via the online data sources for a minimal cost. The report must be done for the client homeowner and may not be re-addressed into the lender name.

A new more comprehensive appraisal assignment can be done at a future date for a lender if the purpose is for a refinance.  Once a refinance appraisal is completed our company has a three month policy before another appraisal will be conducted on the same property for the same purpose.  This is done as a courtesy to our initial client and reduces the chance of the homeowner from shopping around.