BIC TIP #1234: The Appraisal World Overhaul

It sounds minor, but Stephen Long says this one is a biggie. In this BIC TIP, he explains that the appraisal industry is getting an overhaul, changing things that have not changed in years. For brokers, the impact is practical and immediate: the potential for closing delays and a greater need to communicate quickly with appraisers.

What Is Changing

According to Stephen, Fannie Mae and some of the big players in the mortgage world have changed the way they want appraisals done. The new approach calls for a much more detailed process than appraisers have been used to.

That means more information gathered, more detail documented, and more time spent on each assignment.

A Limited Pool Gets Busier

Here is the catch. The pool of appraisers available is already limited. When each appraisal requires more work, that same limited group can complete fewer assignments in the same amount of time. Stephen warns this could cause delays in closing.

Buyer agents and listing agents alike should factor that possibility into their timelines and set client expectations accordingly. Talk with the lender about realistic turn times.

Answer the Appraiser Promptly

Appraisers are going to need more information from brokers and from owners. If an appraiser reaches out to you, whether you are the listing agent or the buyer’s agent, get back to them promptly. A slow reply from you can become a delayed closing for your client.

Keep an open line of communication with your appraiser friends. Have property details, updates, and relevant information ready to share.

The Practical Takeaway

Expect a more detailed appraisal process and the possibility of longer timelines. Build in some cushion, keep your clients informed, and respond quickly whenever an appraiser asks for information. Stephen covers these changes in more depth in his update and CE classes, so consider joining him to learn more.