problems or delays.
Once the appraisal is completed, the ap-
praiser submits it to the management com-
pany for review and for final submission
to the lender’s underwriting department.
The management company, not the lender,
communicates any necessary revisions or
addendums back to the appraiser.
For brokers, the difference now is that
you cannot order the appraisal or other-
wise communicate with the appraiser when
it comes to loans to be sold to Fannie Mae
or Freddie Mac. You won’t even know who
the appraiser is.
If the management company is good,
then it should have a list of local appraisers
from which it can get the appraisal done
quickly and accurately. The appraiser es-
sentially will do the appraisal “as is,” and
the AMC will report any deficiencies with
the property or market area to the lender.
The appraiser’s goal is to obtain the
most accurate value possible. The lender
uses the appraisal as a tool when making
a lending decision, and it wants to know
what is good and bad about the property.
As such, the appraiser will put everything in
the report. Before the appraisal is ordered,
All rights reserved. Third-party reproduction for redistribution is prohibited without contractual consent from Scotsman Guide Media
Reprinted From Scotsman Guide Residential Edition and scotsmanguide.com, November 2009
By Brian C. Coester
Coester Appraisal Group
Sure, you can’t order an appraisal for most
loans — but you can help clients prepare
advise the borrower that any repairs or
property deficiencies should be addressed
before the appraiser comes out.
There are a few things that you, as a bro-
ker, can do to help your clients get the most
out of the appraisal experience and to help
ensure success during the process, even
if you are unable to order the appraisal
1. Understand that no estimate of value
will be given to the appraiser. It may be
a good idea to advise your client that
this will be a “roll of the dice” as market
values have d