Before You Hire An Appraiser

Why are you getting an appraisal?  Is it needed to close a loan? Is it to find out if you have enough security for the loan in case the borrower can’t pay?  The appraiser must make sure that, if the property were to be foreclosed on the lender will be able to get there money back.  The appraiser is not determining whether the purchase price was fair or not.  The appraiser is working for the lender.

Here are a few ideas that will help make for a smoother working relationship with the appraiser. Get the appraiser this information before he starts.

–      Get a copy of the loan documents –      A copy of the sales contract –      He/she will need a copy of the deed and legal description –      Closet intersection and address of property –      A description of property improvements –      The existing owners name, address and phone numbers –      Rent roll (if its and income producing property)

Tell the appraiser what the appraisal is for.  If you have some important information that would help the appraiser let them know what it is and get the information or data to him/her before he/she starts if possible. 

Make sure before you hire an appraiser to find if any other lenders recommend him/her.  Find out the types of projects he/she has done in the past.  If your taking bids for appraisers make sure your going with the best qualified not necessarily the lowest price.  Do consider that you may not get from the lowest bidder everything you need.  If you needed a correction you could have problems getting it. 

Find out what each bidder offers that make up there bids, you’ll be surprised at the difference.  Make sure before you contract with an appraisal firm who will be doing the field work, inspections and reporting, you do want to know whether a trainee is doing most of the work. 

Talk with the appraiser what you will need from the project your giving him/her. The appraiser needs to know what type of appraisal you need whether it’s a full appraisal or a limited appraisal.  Make sure you have in writing what is required, expected and agreed upon. 

Be precise.

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