Express Capital Mortgage on the appraisal process? Ok, so AzMortgageMan is not here to rant or vent about the process per se but we like to share our recent findings with value challenges. First, where we are getting information on the values of properties? Express Capital Mortgage has access to a free tool from a title company where we go to basically get comps based on tax records. Fast, free, and easy resource. One step higher than county tax records and definately NOT as good as having ARMLS access.
Express Capital Mortgage or AzMortgageMan does not have direct access to appraisers, nor do we have any license to appraise property. So what CAN we do when questions pertain to value of a property. We have to have some indication right? We are out to help our borrowers not burn $400 for no reason.
Having said that, Express Capital Mortgage employees still find themselves amongst appraisal value disasters but they CAN be fixed. There are many bad or rushed appraisers out there right now.
AzMortgageMan doesn't doubt the kind of work that goes into the appraisal. What Express Capital has been doubting is inconsistancies in two Major areas that determine value.
Comps and their age
Age of a comp used is HUGE. Look at the date comp sold. Compare to other recent sales in the subdivisions with similar square footage and see when they were sold. Here is why. Common sense and Lenders look at most recent "like" properties best represent value. For example, we recently had compared a sold property sold 7/29/10 to a Model match of that comp sold 09/15/10 and there was a 30k difference. Not to give up which way it swung, my point is the appraiser should have generally used the 09/15.
Adjustments are difficult. One of the struggles in age is how much the appraiser stretched the characteristic adjustments. Again, using a "model match" adjustments to value between homes would be very little. gross and net adjustment percentages on the appraisal give you a good indication.
Next time just because you get an appraisal you don't agree with ask a trusted real estate person to put some analysis into it. Comps, Comps, Comps! Those matter.
Express Capital Mortgage Inc. reviews appraisals for you and does rebuttals often to contest errors!