Last year, changes were made in how appraisers were hired.  Previously, the lender contacted the appraiser directly.  Prior to placing the order, the lender could also request a comp check to determine if the appraiser was likely to value at selling price.  Some believed, as lenders hire the appraisers, they could exert undue influence over their work. Hence, the creation of the Home Valuation Code of Conduct (HVCC ). 

There are many excellent appraisers, but we can't always hire them. Currently most appraisals are ordered through a management company.  They typically keep as much as half of the appraiser’s fee and farm out appraisal requests to those desperate enough to accept the pay cut.  Many of the appraisers are inexperienced, or out of area and not familiar with LA County values and others are simply lazy and complete inaccurate and sloppy reports. Read more about sloppy appraisals here 

Lisa, Natalie or I, try to meet each appraiser and provide him with comparables (AKA comps: similar properties which have recently sold).  Appraisers only view the interiors of homes they have appraised; Realtors© are continually previewing and showing homes.  Considering that we have viewed the interiors of many of these homes, one would think our input would be valuable. Interesting that appraisers phone me weekly to ask value and condition questions.  Who knows better than your local Realtor©?



I had a frustrating interesting conversation earlier this week.  An appraiser phoned to set an appointment for one of my escrows.  As the home is vacant, in addition to the electronic lockbox I also have a combination lockbox.  This works well (for vacant homes) as some real estate agents don’t go to the additional expense of paying for the keypad which opens the electronic lockbox.

This appraiser hoped to access the combination lockbox.  I told him that one of my team would meet him at the home; we wanted to provide him with comps and a few comments regarding homes we knew a bit more about than he might.  The appraiser told me that he would not look at our comps.  He again insisted on being provided the combo. 

I asked the appraiser which area he was from and this really set him off.  Currently, many appraisers are from outside Los Angeles county, but appraising LA homes.  I don’t sell homes outside of Los Angeles County and was not in the mood for a cranky appraiser, especially one who might be from Orange or San Bernardino County.  The appraiser responded, “My client hired me and approved my credentials”; he would not tell me where his business was located. 

In twenty years of selling real estate I have never had an appraiser tell me that he wouldn't’ look at the comps I offered, or listen to an explanation of property condition.

I told the appraiser, that “I represent the home seller, and that I assured my client, that I would meet the appraiser to provide comps.  I would check with the seller to determine if the seller thought that this was no longer necessary.”  The appraiser provided his phone number, which incidentally is an 818 area code, so he is not from out of area. But he is mean and cranky and I know we need another appraiser.

I asked around and this is what an anonymous appraiser had to say: "They would like the appraisers to not talk to agents about anything other than setting up the appointment and review of contract. I will always take comps from agents. It may provide data that I don’t already have. It is my choice if I want to use the comps and I don’t consider it undue influence.”
 
I phoned the buyer’s lender.  And we are muddling through, trying to get a different appraiser – stay tuned!

Related Posts: What is a real estate comp?  
Appraisal problems becoming common in Los Angeles
Trouble on the horizon for homeowners hoping to refinance