Q:  Why do appraisers refuse to do comp checks? 

A: Appraisers are Certified or Licensed under strict State Laws by the Uniform Standards of Professional Appraisal Practice (USPAP) that governs appraisal practices.  It is very clear to appraisers why lenders want  a comp check  prior to proceeding with an assignment, however, according to USPAP an appraiser must maintain in his/her files for a period of at least five years a record of reasoning and notes as to how the value or range of value was reached.  In effect, USPAP terms this process as an appraisal.  Therefore, by performing a comp check the appraiser would in fact violate the rule by accepting a second assignment on the same property with a pre-conceived or predetermined value.  The main focus behind this USPAP rule is to combat fraud and unacceptable lending practices.

Q:  I’m getting some of my appraisals done in as little as 48 hours but others are taking 6 or even 8 days.  Why is that?

A:  There are appraisers around the country sending emailed advertisements stating they can provide 48 hour turnaround.  To an extent, this is misleading advertisement to lenders who are on a short time line in getting a loan closed.  Depending on; “the property”, “the appraiser” and his/her current workload (among other things) an appraisal can be turned around in 48 hours.  Typically, this would be the case of an appraiser who has worked in the subject neighborhood, and the property is reasonably similar to recently closed sales within that neighborhood.   More complex assignments will require extra time.

Q:  If a property needs some repair, is it required for the appraiser to list the items of repair in the appraisal?  The buyer is fully aware of the repairs needed.

A:  The appraiser is required by law to make a note of any deferred maintenance and deficiencies in the house. He also needs to include in the appraisal an estimated cost to repair these items.  From a risk management standpoint, the Lender depends on the appraisal to make an informed decision when funding a loan.  Needed repairs and defects can impair the value and marketability of a property.  As such, if the buyer defaults the Lender is faced with having to remarket the property at a lesser price/value.