Just a brief note to share a recent experience with the appraisal process. We are going through a full documentation refinance that requires an appraisal.
First, the appraiser contacts us to schedule the appointment. During the call he asks a few questions about the home. Here are the questions we were asked over the phone: 1) When did the purchase occur? 2) Has any work been done on the house? 3) Is there documentation available to verify the work? 4) Is there a basement? 4a) Is the basement an apartment? 5) Is there a garage? 6) How is the home heated/cooled? 6a) How old is the HVAC system?
The appointment was scheduled for a Thursday at 10:00 am. The appraiser called the day prior to confirm the appointment. The appraiser arrived 10 minutes early for the appointment and spent approximately 90 minutes going through the house/property. (For what it’s worth, the home is approximately 1,500 square feet.) He asked for, and received, the documentation discussed over the phone to verify upgrades to the house.
We do not yet know the result of the appraisal. We certainly do not know what other data sources he will use but it was obvious during the conversation that he is very familiar with our neighborhood.
We are fairly confident there is sufficient value in the home. However, if the appraisal report shows a lower than expected value it would be hard to pin this on the appraiser (unless there is a glaring error in the report).
So, for all the reports of bad appraisers out there we thought it would be worth sharing a good one. Thanks Mr. Haddon for inspiring a bit of confidence in your industry.