Real estate appraisals can be tough for both homebuyers and sellers. If the appraisal comes in lower than the agreed-upon purchase price of the property, it can cause big issues for both parties. In addition, real estate appraisals have also been recent obstacles for mortgage lenders and originators due to timing issues and delays.
Mortgage brokers in particular have recently dealt with appraisal time delays due to wholesale lender partnerships that require appraisals to be done by third party appraisal management companies (AMCs). In turn, brokers have been frustrated with AMCs and appraisers over the service and communication issues — as well as the associated fees.
Home appraisals have traditionally taken from a few days to a week to complete and issue a report, depending on the appraiser’s schedule and the complexity of the property. While the housing market has slowed significantly in recent months due to an uptick in mortgage rates, high home prices and a lack of inventory, brokers complained at the height of the recent red-hot housing market that appraisals were taking a number of weeks to complete – which forced clients to miss closing dates.
The housing market is unlike anything we’ve seen in years past. Whether these types of real estate appraisal issues and delays will continue now that home sales have slowed to a crawl in most markets across the nation remains to be seen.
News and commentary specifically for appraisal and valuations professionals. Enter your email below to get on the list!
Appraisal and Valuations News
Kenon Chen, executive vice president of strategy and growth at Clear Capital, talks about technology’s role in appraisal modernization.