Home Appraisal 101: Home Appraisals Tips and Home Appraisal Process 2020 (What To Watch Out For) 🏡 - YouTube

Today I want to do a little bit of homebuyer 101

As well as talk to you guys about what's happening in the market and appraisals

So today we're going to be doing a little overview on appraisals

Yes appraisals appraisals and people often ask me when they get into contract on buying a house. Hey, do I need to order the appraisal?

No

The lender will order your appraisal. Okay. Now if you're like, oh, well, they said the other buyer had an appraisal. Can I use that?

Only if it's va or an fha appraisal

Those are the only two appraisals we can use

On a property and they have to be within a certain period of time blah blah blah blah overall

You just need to keep in mind you are not responsible for ordering the appraisal the lender will order it

Okay now it is a question. You want to ask your lender?

especially right now

I I know i've done videos before where i'm like volumes through the roof every time I think

that

The market won't blow up anymore. It gets bigger and bigger and bigger. So first we have the refinance boom

Still going on now. We have a purchase. Boom

Unlike anything i've seen before and I think it's because you know people were locked in their houses looking at zillow

and they realized oh, I don't like this or I don't like that and looking at zillow or

Realtor.com or any of those websites is a great escape. I mean, it's why i'm in carmel now

Part time. This is the new carmel office. It needs some art. Uh, it's very overcast here. So

Gonna need some new lights. Um, yeah, it's because people are trapped inside. So we're seeing this huge surge of activity. Well,

What comes with activity is?

appraisers get behind

Yeah appraisers get behind title and escrow officers are behind lenders. Everyone's behind

Everyone's behind except for realtors realtors always want to move faster. Love you guys. Um

Not always but yeah, it's because there's so much volume. So it's very important right now to ask your lender

Hey, when can you order the appraisal now?

For instance with fha. I can't order it until you sign your loan disclosures which we issue within two days of receiving your contract

Um, the legal guidelines three days of receiving the contract. However, we're usually aiming to do it as quick as we can

It's just we've got to get fees from title and escrow or the attorney and once again with that volume

Stuff where we could snap our fingers and we'd have it

Sometimes we have to snap snap stock snap stock to get it so it can take a couple days. Um

With a conventional loan, we order it day one

Day one like the second I get that contract. My team is ordering that appraisal. The reason we are doing that is because

I mean, first of all, we've always done it that way. It's just the way my team works but

It's also because the appraisers have so much volume right now

I need to get it back and if I want to get it back, I need them to have as much time as possible

So if I order it on day one, they have a better chance of hitting the timeline that you have in your contract. Um

Depending on what state you are you're in you may have 14 days for appraisal 17 days for appraisal

Um, or there may not be an appraisal contingency

But there are some places where they want the appraisal back within 10 days and that can be incredibly challenging

If the lender's not ordering it up front

Okay, so you really want to ask when are you going to order my appraisal? Same thing with va? Oh my goodness

we are ordering those appraisals the second we can and it's because stuff where

Last month seriously last month, I could get an appraisal in seven days in the same market i'll see that

It's going to take me 14

So what's happening guys? There's so much activity

Appraisers who you know had 10 a month now have a hundred and it's because you've got the refinance and the purchase

purchases, you know

Climaxing at the same point it's out of control

Out of control. So you want to make sure your lender is ordering it up front now if you're like

Well, my friend susan is an appraiser. She'll give me a discount

Yeah, totally can't use susan guys. I can't use anyone you recommend. I don't get to pick either

So the way the regulations work around appraisers is it needs to be an independent third party that selects the appraiser?

And that's because there was so much corruption back in the day. Like I would hear the stories about i'd be like wait

How do they finance it that house is a total dump. It doesn't meet guidelines. You know, it's missing a bathroom and I care

Oh, well, he just gave the the appraiser a bottle of wine their friends

To all the sleazy people

Thank you so much for making it so much more difficult for the ethical ones. Um, yeah, so there's tons of regulations around appraisers

I'm not allowed to call an appraiser

Period so if you're like jen, can you call the appraiser? No, I can't can the realtor call them. Sure

Can I absolutely not i'm not allowed to?

And it's because there was so much corruption in the industry lenders the originators. We are not supposed to reach out to appraisers period

at all

Okay, um now if you're like, okay

My realtor wants to use one of these for appraisers once again can't take suggestions and it's because of all the corruption in the past

So, you know

we don't know if your appraisers buddies with bob and paul and jane and if they're just gonna say

It's worth what you're buying it for

We need an independent party to verify that the amount you're paying for the house is accurate

If it's someone's buddy, how accurate is it?

question mark

And and here's the thing, so I was actually talking to a client the other day and they're like, oh I

Hope my realtor knows this person

so it comes in at value and I was like

I actually corrected him

I'm, like no you need to hope that the appraiser does an honest and ethical appraisal so that you don't overpay for the property

That's the thing you want an honest and ethical appraiser who verifies the property's worth what you're paying for it

Because I don't know about you guys. I don't want to pay more for a property than it's worth

Why would I want to reverse my equity position up front? And I know there's a total different school of thought that's like

Oh, well, it's going to be worth that

Well, that's cool

Like I mean, there's some new brands that one day will be more expensive because they'll be considered designer

Do I want to pay designer prices on a non-designer brand right now?

no, of course not I want to get it cheap and then I want it to be worth a designer brand because then I make

money

So just keep that in mind. Um

Condition same thing, you know appraisers are not home inspectors. So you need to understand that's not an appraiser's job

However, it is their job to let the lender know if there's any health and safety issues

So one that i've seen a couple times over the past few years is someone will start to build a deck and stop

Maybe it's a california thing

I don't know, but then you'll have these doors where if you open up the door and you step you will fall 10 feet

Okay

That's a health and safety violation that door

Needs to be not a door or there needs to be a bars or something

So that people can't fall to their death appraisers are looking for stuff like that as well

So they're looking to make sure the value is correct

The house is an average or better condition and there's no health and safety another issue

That would be a health and safety would be exposed wiring

um

Those are really the ones I see the most the decks of doom and you know rotten decks too and

It could be california thing. We have so many rotten decks. We're like

You know a realtor was telling me the other day that the appraiser fell through the deck

I'm, like well, i'm sure that went well, right. I mean there's all these things and appraisers. Look at that

So you just really want to be mindful that you don't have to order the appraiser appraisal

You don't get to pick the appraiser. Your realtor does not get to pick the appraiser. The lender has to order the appraisal

We're ordering it from an independent party so that your appraisal is honest and ethical and independent

Independent meaning no one is influencing that appraiser they get a copy of the purchase contract. They go out

They see if there's comparable sales and they come back

That's it

Okay

So make sure you guys are asking your lenders up front right now to order your appraisal as soon as possible

If someone's telling you they can't order your appraisal until they have loan approval

Uh, unless you have like a 90-day close that is a problem. And also it's unusual

So it's really something where if like i've qualified someone I know they're strong. I always order the appraisal day one

Okay

Only time i'm not going to do that is if the borrower says to me. Hey jen

Can you wait a week to order the appraisal because I have some concerns about the inspection

And I want to get the home inspection first

Then I would delay the appraisal because the thing for you guys to know is the appraisers once again are independent third-party companies

So if an appraiser goes out to a property and appraises it and just and you decide you don't want to buy the house

You still need to pay that appraiser because he did his job and once again independent third party company

So I hope this has been helpful

If you have questions or comments

Please reach out if you have anyone who's graduated from college and doesn't know what they want to be when they grow up

Tell them to be an appraisal

Appraiser because we need some the industry is does not have enough appraisers

Um, the demographic is on the the older side for sure

We need new blood in the appraisal arena and there is a lot of work and some of those guys make really good money

So if you graduated from college because I believe that's a pre-requirement if someone wants to

Um, correct me please do

Check out being an appraiser. You set your own hours. You do what you want make good money

So, thanks