Engaging the Appraiser: Do’s and Dont’s
When communicating with the appraiser, there is first a strong preference for a written engagement appraisal letter before you start developing or disputing the appraisal.
- Provide a copy of the sales contract.
- Request consideration of additional information about a subject property or about comparable properties.
- Ask for additional supporting information about the basis of the valuation.
- Request that factual errors be corrected in an appraisal.
- Exclude a person from consideration for future engagement because a property’s reported market value does not meet a specified threshold.
- Communicate a predetermined, expected, or qualifying estimate of value, or a loan amount or target loan-to-value ratio.
- Specify a minimum value requirement for the property that is needed to approve the loan or as a condition of ordering the valuation.
- Condition a person’s compensation on loan consummation.
- Fail to compensate a person because a property is not valued at a certain amount.
- Imply that current or future retention of a person’s services depends on the amount at which an appraiser or person performing an evaluation values a property.
This blog is provided for your information only and does not constitute legal advice. It may not reflect new or recent changes in regulation. No representation or warranty is made as to the accuracy or completeness of the content.
At MountainSeed, we work with lenders to help them understand the ever-changing regulatory environment and anticipate legislative changes. We are also committed to developing sustainable, long-term solutions that are mutually beneficial to our bank clients and to the appraisal community. If you have any questions about our services or anything in this blog, please contact MountainSeed Appraisal Management at (855) 640-0905 or visit mountainseed.com.