A residential appraiser’s work is getting harder, and they are feeling extra cautious about what they turn into the lender and loan underwriters.  Recent changes in the industry and close scrutiny by the lenders are making their jobs increasingly difficult.  The appraisers are wary of fingerpointing in the event that the property ends up in forclosure.

Some obvious reasons for the changes include well documented problems of mortgage fraud and forclosure.  But the lenders are feeling the pinch as well from the money side – their mortgages are not as easy to resell to investors, so they put extra scrutiny on the values submitted by the appraisers.

So called A paper loans are still good to have, but not all home buyers have great credit.  It seems to be increasingly difficult to qualify for a B grade loan because few of these loans are being bundled and sold.

From the Seller’s perspective, they may find added comfort in working with a full-service Realtor over a part time or limited service broker.  Realtors at Kentwood City Properties know and work with the comparable home sales data to price the home appropriately.  Then, they make sure the appraiser has the infomation used to price the home so that the appraiser provide the right value.  This helps make sure that the deal closes and the Seller gets the best price.

Denver is fortunate to have some really good appraisers that consistently provide solid evaluations and work hard to stay current in a changing marketplace.  Two that come to mind are Ken Harmon at Metropolitan Appraisers and Drew Mathews at Mathews Appraisals.

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