BIC TIP #1310: Yes, Appraisal Changes Are Coming
Yes, appraisal changes are on the way, and the rumor mill is already spinning. Stephen Long, your Notorious BIC, addresses the big question about the looming November update: how much will it slow things down? His honest answer: we do not know yet. And that is exactly why brokers should plan carefully instead of panicking.
What Is Actually Changing
Starting in November, appraisers will switch from their long-standing reporting process to a whole new system built around a dynamic web form. The new form will ask for more information and will be very property specific.
More detail generally means more time. It is reasonable to expect appraisers may need a little longer to complete reports, at least while everyone gets used to the new system.
Ignore the Speculation
Stephen has heard all kinds of predictions: delay your closings, plan on long due diligence periods, push every closing out further. The problem is that there has not been enough evidence yet to know how much of a delay, if any, the new process will cause.
Will there be delays? Possibly. Will there be a little more cost? Maybe. But nobody should be rewriting every contract based on guesses. Stay tuned and stay vigilant.
Talk to the Lender Before the Offer
The smartest move is a simple one. Before a buyer makes an offer, check with the lender to see whether the proposed due diligence period and closing date give enough time to get the appraisal back.
Lenders will have the most current, real-world picture of how long appraisals are taking. Let that information shape the timeline instead of rumors from the break room.
The Practical Takeaway
Appraisal changes are coming in November, and they may add some time or cost to transactions, but the full impact is not known yet. Do not overreact. Before writing an offer, ask the buyer’s lender whether the due diligence and closing timeline leaves enough room for the appraisal, and adjust based on real information.
