How to Help Your Appraiser During the COVID-19 Pandemic
By Mark Fisher, Appraisal Tech / Valuation Associate
The coronavirus has affected every person in the United States, in one way or another, even if some areas of the nation have been hit harder than others. Every industry and profession has felt the impact, some for the better and some for the worse. The appraisal business is no exception.
In this article, we will cover the different types of appraisals and how you can help your appraiser give the same professional service for each one, as before the coronavirus, while keeping you both safe. We will also look at how lenders and courthouses are doing their part to help as well.
Rural Land Appraisals
Rural America has always been a little different on how they view things and how they deal with situations, and so it is with the COVID-19 pandemic. It takes a lot to rattle the people of rural America.
Not Much Has Changed in Rural America
As a rule, the rural communities have not been affected by the virus as badly as the urban areas. In many rural areas, you could very easily forget there is a pandemic going on. So, while appraisers are generally taking precautions for their sake and the clients’ sake, there doesn’t seem to be much concern or reluctance over purchasing or selling property.
Commercial Appraisals
Commercial appraisals are generally performed in the urban or more populated areas, where concerns and fears over COVID-19 are stronger. Depending on the business, the number of their employees, and their social distancing guidelines, the building to be appraised could be vacant or nearly vacant when the appraiser visits it, or it could be fully staffed with many workers.
Vacant Buildings Keep Everyone Safe
This, of course, will determine how the appraisal is carried out, as an empty building usually doesn’t warrant extra safety measures from an appraiser.
Occupied Buildings Are No Problem, Just Take Precautions
An occupied business appraisal, on the other hand, will need to be addressed much the same as a residential appraisal. If you are in charge of a business that is undergoing an appraisal, you can follow the same guidelines.
Residential Appraisals
Residential appraisals can be a little more difficult. The residences are usually occupied, often with more than one person. There are several things you can do if you are getting an appraisal on your home.
Residential Appraisals
Three Ways to Inspect
How much of the home the appraiser physically sees.
Interior Inspection
The appraiser enters the home, measures, and takes photos inside and out
Exterior‑Only
The appraiser views and photographs the outside; the owner can share interior details and photos
Desktop
No physical inspection; information from tax records, realtor listings or the homeowners themselves
Which type is allowed depends on the lender and the loan.
Farm · Commercial · Home appraisals | Missouri · Illinois · Iowa
No Physical Inspection, How You Can Help
First, and probably the best-case scenario, you can have the appraiser not enter your home at all. This can be done by supplying the info needed, such as measurements, heating and cooling information, and any other details that the appraiser may deem important. This can be done by phone or via e-mail.
Also, most appraisers like to incorporate photos of the interior into the appraisal. You can always send photos via e-mail, as well. Send photos of anything you think would be important and give details of anything you think needs special attention. Your appraiser will sort through the photos and use the ones that are more significant to the appraisal. Don’t worry about sending too many.
Exterior photos of the home can also be e-mailed, but the appraiser should be able to take those photos safely.
Homeowners
How You Can Help Your Appraiser
Share information so less time is needed on site.
Measurements
Share by phone or e-mail
Heating & Cooling Details
And any other details the appraiser may deem important
Interior Photos
Don’t worry about sending too many
Point Out What Matters
Give details of anything that needs special attention
Follow Up Later
Call or e-mail if you forget something
Farm · Commercial · Home appraisals | Missouri · Illinois · Iowa
Exterior-Only Inspections
Many lending institutions are temporarily allowing exterior-only appraisals or desktop appraisals of homes during the COVID-19 crisis. The latter is an appraisal that has no physical inspection at all, just information obtained from tax records, realtor listings or from the homeowners themselves.
Interior Inspection, Steps for a Safe Process
If you and your appraiser do decide to do a physical interior inspection, there are several things you can do as well.
1. Select a Time When Few People Are Home
First, you can have as few people in the home as possible.
2. Wear Protective Masks
You can also wear a face mask and ask your appraiser to also, although most appraisers probably will without asking.
3. Reduce Surfaces the Appraiser Needs to Touch
Next, you can open any doors, turn on any lights or do anything else that may eliminate the need for the appraiser to touch any surfaces.
4. Give the Appraiser Space
Then, of course, practice social distancing during the inspection. These practices are easy to do and cause little inconvenience.
5. Email or Call with More Information
If you forget something or forget to ask a question, you can call or e-mail the appraiser later. This reduces the time the appraiser has to spend on site.
Courthouses
There are also many ways that courthouses can help an appraiser during the COVID-19 situation that are a little different than before. Many courthouses are closed to the public, due to stay-at-home protocol, issued by the state or local government. Therefore, there may be only a few employees on-site or their work hours may be irregular or shortened.
Email Information
In this case, the appraiser can leave a voice mail or send an e-mail requesting the information they need. The courthouse can then get them that information when they return.
GIS Systems
Some county offices have Geographic Information Systems (GIS) that can give the property information an appraiser needs for an appraisal report, such as tax information, owner history, and legal descriptions.
County Records
What GIS Systems Can Provide
Some county offices have Geographic Information Systems (GIS) with:
Tax information
Owner history
Legal descriptions
When offices are closed, appraisers can also request information by voicemail or e-mail.
Farm · Commercial · Home appraisals | Missouri · Illinois · Iowa
Lending Institutions
There are several ways banks and lending institutions can make an appraiser’s job a little easier under these unique circumstances. Many banks are prohibiting appraisers from entering homes for mortgage-related inspections. This would have been a problem under pre-COVID-19 regulations. Now, this is not as bad of an issue, due to temporary changes that have been put in effect. As mentioned earlier, many lenders are relaxing their standards for property appraisals.
Accepting Exterior-Only Appraisals
The two largest lending institutions, Fannie Mae and Freddie Mac, plus the Federal Housing Finance Agency (FHFA), have all agreed to use “appraisal alternatives” to reduce the need for appraisers to physically inspect the interior of a home.
New research shows that the coronavirus can live for several hours or days in aerosols and surfaces. This has led to concerns that appraisers entering the residence could further spread the virus. This has prompted lenders to temporarily accept exterior-only appraisals and desktop appraisals as an alternative. This will greatly assist appraisers with their job, decreasing time spent on inspections and increasing safety measures.
Conclusion
In conclusion, the COVID-19 pandemic has caused us all much stress and inconvenience. Appraisers are no exception. They have been deemed as essential workers in most states, helping them continue, for the most part, to be employed.
While this is a good thing, still the aforementioned problems exist. The ways listed above are many of the ways you and other groups can help an appraiser during the COVID-19 crisis.
With interest rates at historic levels and most banks still operational, this may be a good time to purchase a home or to refinance your existing home. In spite of a few specific changes and conditions, there is no reason an appraiser cannot give you the same professional, accurate service as before, with a little help.
