5 Ways Lenders Can Prepare Clients for an Appraisal
By Stan Choate, Appraisal Tech / Valuation Associate
Team Effort
Everyone involved in the appraisal process desires the process to work smoothly. But a routine appraisal is not the effort of the appraiser alone: it is a team effort between the appraiser, the property owner, and the lending institution. Since lenders have a longstanding relationship with many of their clients, they have the ability to work proactively for the effectiveness of the appraisal before the appraiser even begins his work. Here are five ways that lenders can prepare their clients for an appraisal.
For Lenders
5 Ways to Prepare Your Client
Tell your client, before the appraiser calls:
That an Appraisal Has Been Ordered
And why, so the first call isn’t a surprise
That a Physical Inspection Is Needed
Specify that it’s both interior and exterior
What Information to Gather
So it’s at hand when the appraiser calls
The Projected Completion Date
Spurgeon Appraisals gives lenders an estimate
Who Can See the Appraised Value
Under USPAP, it’s disclosed only to the client
Farm · Commercial · Home appraisals | Missouri · Illinois · Iowa
1. Inform Your Client of the Appraisal
Our first phone call to the property owner or occupant can sometimes be turbulent. The owner has not always been notified that an appraisal has been ordered. When we call them, these owners are often angered or dismayed about the appraisal, because they fear that the bank is taking some action that will be disadvantageous to them, or that the appraiser will share information with the government that will lead to a tax increase. The lender can help us avoid these tense conversations by explaining to their clients that an appraisal has been ordered and why.
2. Inform Your Client of the Physical Inspection
While most people know that an inspection is part of the appraisal process, some are surprised at hearing that an inspection is needed. Again, they are not only surprised, but usually very uncomfortable with the idea of an inspection, since a stranger will be walking around their property, checking their buildings, and maybe even inspecting their house. Once again, the lender can prepare their clients for this process by telling them ahead of time. Be sure to specify that the inspection is both interior and exterior.
3. Inform Your Client of Information They Might Give Us
Oftentimes the property owner stands the best chance of providing us with information we need for the appraisal. However, they very often do not have this information at hand, because they did not know they might need it. The lender can give them a list of information to gather before the appraiser calls them. In general, you can usually expect us to need deeds, legal descriptions, surveys, recent tax bills, and leases.
For Property Owners
Documents to Gather
In general, the appraiser will usually need:
Deeds
Legal
descriptions
Surveys
Recent
tax bills
Leases
The lender can share this list with the client before the appraiser calls.
Farm · Commercial · Home appraisals | Missouri · Illinois · Iowa
4. Inform Your Client of Our Projected Completion Date
Some borrowers are more interested in appraisals than others, and such people usually want the appraisal finished immediately. Since this is generally not possible, their next desire is to know when the appraisal will be done. At Spurgeon Appraisals, we practically always give lenders estimated completion dates for our appraisals. Informing the client of this timeframe should be helpful to them.
5. Inform Your Client That We Can Only Disclose the Appraised Value to the Lender
Oftentimes the property owner stands the best chance of providing us with information we need for the appraisal. However, they very often do not have this information at hand, because they did not know they might need it. The lender can give them a list of information to gather before the appraiser calls them. In general, you can usually expect us to need deeds, legal descriptions, surveys, recent tax bills, and leases.
USPAP Confidentiality
Who Sees the Appraised Value?
When a lender orders the appraisal, the lender is the appraiser’s client.
Appraiser
Completes the report
Lender
The client; receives the appraised value
Borrower
Lender shares the value once the report is complete
Property owners and real estate agents are not automatically entitled to the value.
Farm · Commercial · Home appraisals | Missouri · Illinois · Iowa
Keeping Clients Informed
When you contact Spurgeon Appraisals, you can be certain that we will deal with your clients in a professional and efficient manner. But our efforts are greatly helped by those lenders who keep their clients informed during the appraisal process. With your help, we can all be certain of completing appraisals in a quick, hassle-free manner.
About Spurgeon Appraisals
Spurgeon Appraisals regularly appraises a variety of property types. We have experience appraising farms, residences, and commercial properties. We pride ourselves on providing excellent customer service and quality appraisals. Contact our team to see how we can meet your appraisal needs and exceed your service expectations.
