Episode 053 - Lender Risk and The Appraiser "gods"?
Before we talk about valuation topics, comparable selection, and making adjustments, we have have to get a few things out of the way. This episode focuses on one basic concept, Risk! The lender is loaning a bunch of money and are relying on several factors to ensure they are making a good loan. The appraisal is part of that process and the appraiser has some power and a lot of responsibility. Agents need to understand that part as that risk can be a heavy burden for the lender and that appraiser.
SHOW NOTES
- 00:40 – First new episode in the reformatted podcast. What is the appraiser’s job?
- 00:58 – Two important pieces: The power that appraisers have and the risk that lenders take on in giving a loan.
- 02:00 – Lenders want to know the risk of the property. Many areas of risk for the lender like credit, debt, and income.
- 02:35 – Lender looks to appraiser about the property’s value and the condition.
- 03:20 – Lender does not necessarily care what the buyer and seller think the value of the property.
- 03:53 – Appraisers sometimes think they are gods, but the appraiser has the power to tell the lender, “write the check.”
- 04:22 – Appraisers take that as a huge responsibility and stress about the value and a good report.
- 04:45 – Appraisers are not out to “kill” the deal, and lender has hired the appraiser to give them a good, credible report.
- 05:20 – The appraiser says write that check and my report gives the lender the confidence in making that loan.
- 05:40 – Some reports and appraisers can be a pain, but the bigger issue is recognizing the risk in making a loan.
- 06:20 – B offers to write checks out of agent’s account.
- 06:30 – Not arrogance, because we have the power, we take it seriously.
SHOW LINKS
BETWEEN THE LINES LINKS
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