Episode 008 - Locked In - Appraisal Issues During Covid-19 - (Real Estate Appraisal Between The Lines) Podcast Details

Description

Episode 008 - Locked In - Appraisal Issues During COVID-19

Real Estate "Locked In" Between The Lines! Since we're all quarantined and socially distant, we're releasing several short episodes to guide agents during this unusual time. On our first episode, we cover appraisal-related issues happening right now. We discuss immediate concerns with inspections, value, fees and how lenders and the government are allowing alternative methods to value property.

SHOW NOTES

01:30 – B is RUDE! Introduce Cate & Christian
02:20 – A large portion of appraisers are not wanting to inspect the interior of homes right now. Slow turn times on reports and maybe higher fees. More risk for appraisers.
03:15 – Agents, talk to your lenders about how they are dealing with this issue.
03:30 – Fannie & Freddie announcement on 03/23/2020. They are allowing some lending products to use a drive-by or desktop type appraisals. FHA & high-risk products are still requiring an interior appraisal. (UPDATE: After the recording of this episode, VA revised their rules to allow drive-by reports. See the show links for that info.)
04:30 – What is a desktop appraisal scenario? Likely a person that is not an appraiser to view the exterior and comps and provide some data to an appraiser that is sitting in front of a computer screen.
05:00 – Concern: will the non-appraiser catch things from the outside that a trained appraiser would likely catch.
05:20 – Drive-by appraisal scenario: appraiser does the exterior viewing of the property
05:30 – Good: appraiser won’t see the “bad” parts of the interior of the property.
06:25 – Bad: appraiser won’t see the “good” parts of the interior of the property. Value issues? Send list of upgrades and updates, pictures of the elements should be sent to the appraiser.
07:00 – Appraisers are considered to be essential services as of 03/26/2020 in the state of Indiana.
07:40 – Watch appraisal fees if desktop or drive-by appraisal is completed.
08:15 – Now you might actually get to talk to the appraiser. Good or bad? Help appraisers during this time with information.
09:00 – Christian: Does this apply to home inspectors? Every inspection company is doing something different. Ask the inspector on how they are handling it.
10:35 – Tips on preparing your home for appraiser (and inspector): Leave a bottle of Captain Morgan.
11:05 – Get home showing ready. Turn on lights, open doors, crawl space and attic openings. Leave a ladder. Make it so we don’t have to touch as much as possible.
11:50 – Good for the homeowner too. Appraiser may transmit something the more they touch.
12:45 – Communicate with appraisers to find out what they need.
12:57 – Have PATIENCE with appraisers! It might take a bit longer, have more questions. Appraisers are not trying to be mean. They have genuine concerns too.
13:28 – Set appropriate expectations for clients. What type of appraisal. Communicate!
13:55 – We are in this TOGETHER!