Why appraisers are essential
In a mortgage loan transaction the reliable appraiser is the only party involved that does not profit or have an interest in the outcome, therefore is the only party that can provide an unbiased value opinion.
The loan originator, Mortgage Broker, Real Estate Agent(s), Seller, Buyer, Title Insurance Company, Lender/Bank are not paid until and if a loan closes. All of these parties involved work on a commission, except the appraiser.
All appraisals are not developed or created with the same degree of diligence, and the value concluded may be influenced by those parties who rely upon the transaction closing for income.
Appraisal reports are often misunderstood by Agents, originators, attorneys, journalists, sellers, buyers, borrowers and homeowners who describe the process as an “art”. In fact, only those individuals who attempt to distort the data are culpable. The “highest” value opinion is not a reliable measurement of a reliable appraisal, nor is the existence of a sales contract for an agreed upon sum.
A correctly applied analysis, experience, and expertise, adequate research, and verification is necessary, which requires a realistic and adequate time period.
Importance of competent appraisers
Competent appraisers will adhere to the regulations designed to protect the users and consumers of a particular product from unscrupulous participants in the market. Those professionals that are experienced have the longevity to decline assignments that could jeopardize their career.
Often the consumer may have been influenced to agree to terms that are unrealistic, and the appraiser is the individual that ultimately averts a bad decision.
A consumer may find themselves in debt and requests a second mortgage equity line or refinance. The lender or borrower might, in order to make .
Estate settlement, divorce, foreclosure,