There are several reasons why homeowners need appraisals on their property. From date of death, to refinance, new home equity loans and purchases, to value to sell, wills and trusts or PMI removal, there are many occasions to hire a independent third party like a professional real estate appraiser to find the value of a home.
Before May 1, 2009, many appraisers worked primarily with mortgage brokers and lenders for lending-related business. Brokers and lenders could pick and choose which appraisers they worked with and those they did not want to work with. Non-lender business, through attorneys and accountants relies on strong relationships between professionals and appraisers as well. Homeowners, in non-lending situations generally have the flexibility to work with an appraiser of their choosing as well.
As of May of this year, mortgage brokers are no longer able to hire appraisers on their own. Brokers must work through lenders to get appraisals. Lenders are now relying heavily on Appraisal Management Companies (AMCs) or creating panels of appraisers whom they can work with. The HVCC has changed the way appraisers do business and many appraisers have lost clients and assignments because of it.
As a homeowner, you may be able to hire your own appraiser for real estate transactions. Lenders who have not set up an appraiser panel may turn to the homeowners or clients to find their own appraiser. This is an excellent opportunity for homeowners to find an appraiser who is local to their property and who is very familiar with the neighborhood. In the past, some appraisers have traveled hundreds of miles to appraise a property. In some cases, the appraiser has never been to the area, let alone have the skills and knowledge to appraise in that specific neighborhood.
For non-lending transactions such as wills and trusts, homeowners may absolutely pick their own appraiser. Looks for appraiser websites who advertise a specialty in these types of appraisals or ask friends and family for recommendations.
In some cases, the appraiser has to appraise a home retrospectively. If a spouse dies but no appraisal was performed at the time of death, an appraisal might be ordered as of a specific date in the past (say the date the first spouse died.) This type of appraisal is complicated because getting information past information for a property can be difficult, specially if it is before computers and the internet.
In any case, appraisers are terrific resources for homeowners and the public because they provide an unbiased opinion of value.
