More Objective Appraisals: A Practical Guide for Appraisers
By Scott Reuter Single-Family Chief Appraisal Officer, Freddie Mac
Excerpts: Changing the Mindset – Facts First
What’s the number one thing appraisers should be doing when they develop an appraisal? Stick to the facts. Here are a few more best practices that can help appraisers achieve more objective appraisals.
- Don’t think like a salesperson – avoid words that may be common in Multiple Listing Service (MLS) and used to help sell a home.
- Don’t use shorthand – both ‘123 Church Street’ and ‘123 Church’ could refer to an address but might come across differently in an appraisal.
- Don’t copy and paste – avoid copying from Wikipedia or old appraisal reports or commonly used templates when providing neighborhood descriptions for similar communities.
- Use pre-screening practices – while you can implement your own pre-screening process, some appraisal companies can implement them too.
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My comments: Read this article! Not just a list of words and phrases. Excellent examples and analysis. The author started as a second-generation practicing residential appraiser. He knows what you want.
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NOTE: Please scroll down to read the other topics in this long blog post on effect of low rates on existing home loans, Liability, Bias, FHA manufactured home changes, unusual homes, mortgage origination stats, etc.
Excerpts: This may not be a major problem if the house has sufficient bedrooms to match what is typical and expected in the neighborhood. It can have a negative impact on the marketability of the home if this arrangement reduces the number of usable bedrooms from what is typical.