My New Blog

In my opinion, the best person to order the appraisal would be a person in the mortgage company that does not stand to receive a commission on the closing of the loan.  I believe that a conflict of interest occurs when a loan originator (mortgage loan officer) orders the appraisal as he/she has a stake in the outcome of the report.   After all, it is only human nature that the loan officer wants the property to appraise in order to successfully close the loan, obtain a commission and keep his client happy. 

The role of the appraiser is to provide an objective opinion of value based upon actual comparable sales data and analysis of the current market conditions.  The appraiser client in a refinance or sale of a property is the lender .  The responsibility lies with the appraiser to provide an adequately supported value which is derived after due diligence and analysis. The value is not derived just by pulling potential comparable sales. An analysis of the current market and differences between comparable properties are important to providing an appropriately supported value.     

Desktop valuations may be used by a homeowner/borrower to get an independent objective opinion of value in order to make a selling or refinancing decision.  The appraisal is limited in scope and can not be used for a mortgage transaction.  Discounts are available from Fox Realty, LLC if a lender decides to order a full appraisal on the same property within one month of the initial desktop appraisal. Desktop valuations are offered in towns where adequate information can be taken from the internet. Cost for a desktop valuation is around $100. 

The desktop valuation provided to the homeowner/borrower (Client A)  is for exclusive use of the homeowner and can not be used in a mortgage transaction.  The homeowner in this instance would be our client.The estimate of value can only be discussed with the homeowner and no one else.  Desktop valuation value will not and can not be predicated upon obtaining another assignment.  The name of the client on the desktop valuation can not be changed per USPAP regulations. 

In the event, the homeowner decides to refinance the homeowner most likely will contact a lender. The lender may or may not use the same appraisal company for the refinance or sale of property.  If the lender (Client B) decides to use our appraisal firm the appraiser may at their discretion provide a discount for the new assignment on the same property.  This assignment will have a different scope of work and will have a new effective date and possibly new comparable sales.  The client now is the lender and all discussions of the new appraisal report including value is done with the lender. Any previous assignments for the homeowner will not be discussed with the lender without written permission from the client . 

Each assignment is separate and each have a different client, effective date and purpose.  Value of the property is good only as the effective date of the report, although banks and mortgage companies may rely on the value for three to four months or current guidelines.