New Appraisal Rules from Lenders in 2009

More flies in the ointment, clogs in the drain, crap in the gears for the real estate banking industry as lenders are cutting out third-party appraisers and using their own "in house" appraisers for property valuation. What this means is another disadvantage for the borrower. In house appraisers will take longer to get an appraisal done, will be "motivated" or "demotivated" and possibly "result guided" by there parent institute based on volume and desire to actually fund a loan. A property owner may apply for a loan and the bank may be too backed up with appraisals or over-charge and then possibly "influence" the value. Even if that's not the case, the real rub is lack of Flexibility. You're going to be forced to take whatever you get from the bank and the appraiser might no know your neighborhood or special regional attributes or specific "comps" that add true value. Also, if a client starts with "Bank A" and then decides to go with "Bank B," you'll probably have to get an additional appraisal from each bank; More cost, less opportunity to "shop" your loan to the best lender. Get it right the first time; http://www.ptre.net/