Whether your client is buying or selling a home, the appraisal is an essential step in the transaction, so it’s important to set realistic timeline expectations. Summer is a very popular time of the year to buy or sell a home, with the sheer number of appraisals being ordered it is creating increased appraisal timelines and possibly higher “rush” prices.
Who controls the appraisal due date?
Mortgage banks set the due date for the appraisal, but this doesn’t mean the date will necessarily be met. Often, the original date must be modified, which in turn, will delay the actual closing date.
The closing date can sometimes be unintentionally delayed by the real estate agent and homeowner if they do not return the appraiser’s request for an appointment in a timely manner. We understand that a homeowner may believe that in order to increase the value of their home, the entire house must be spotless and may cancel an inspection in order to get the cleaning done. But right now, appraisers are so busy that if that one opportunity is missed to schedule an appraisal, they will fill that slot with other appointments.
How long does an appraisal take?
Everyone in the industry is currently at the mercy of the appraiser’s schedule. In the past, appraisers could perform as many as four inspections in a day. Add an additional day for writing the report and the appraisal could be completed within two or three days. Unfortunately, with today’s complex regulations and requests for additional information, this time has been stretched to up to a two to three weeks from the time of inspection to the completed report. For commercial properties, this time frame can extend to a month or more.
There is also a shortage of experienced appraisers and they are all overloaded with work. A borrower can put a rush on their appraisal costing upwards of an extra $200-300, but when there is a rush on every appraisal, the prices for a timely appraisal can get even steeper. Warn your clients that this is a possibility, but ensure them that we will all be doing our best to get them into their home as soon as possible.
How should you prepare your client?
At the beginning of the sales process, discuss the appraisal process with your client so there are no surprises. Be honest with your client about possible appraisal turn times and the costs associated with a rush order. And let them know that a spotless house won’t sway an appraiser to increase the home value.
All lenders are experiencing the same delays this summer so it’s extremely important to set realistic expectations with your client to ensure they understand how important it is to accommodate the appraiser’s schedule in order to close their financial transaction.
We are always here to help you foster your client relationships; providing top notch customer service. Call, Text or Email “The Polder Group” (520) 495-0222