Shorten Your Appraisal Turn Times & Keep Your Customers Happy

 

Are you familiar with the phrase “a watched pot never boils”? Think about it: any time you’re antsy for water to boil, it seems to take even longer than expected. That’s because you’re anxiously pouring over the stovetop concentrating on those tiny bubbles rising from bottom to top. We’ve been there many times, too, and not just with water. It seems like appraisal turn times can be strikingly similar to boiling water. As a lender, you place the order for an appraisal, and you’re left waiting for it to come through…watching that appraisal pot until it boils. However, there are a few things that you can do to reduce your appraisal turn times all while keeping your customers happy.

Before we delve into how to keep your turn times down, let’s address exactly why turn times might be longer than expected. The first is market saturation. There is a lot of appraisal work to go around in the real estate market, but the number of active appraisers is continuing to shrink. In fact, as of November, Oregon appraisals were being pushed into January. Because there are a lack of appraisers, it takes longer for appraisal reports to be completed because there aren’t enough appraisers to go around. Another issue facing turn time? A property’s location. Major metropolitan areas versus rural areas are going to have considerable differences in their markets. For one, comparables aren’t as readily available in rural areas, and appraisers might have to travel or research far and wide to locate them. Additionally, in major cities, properties tend to be similar in size whereas in rural areas, there can be many differences between properties. Complexity in a property can make a huge difference for an appraisal. A million-dollar home complete with customization in an area with more modest homes will make it harder for the appraiser to find comparable properties which just prolongs the process. While these potential problems can’t be avoided, there are things that you can do to help smooth the appraisal process.

1. Be prepared

Have all of the documents needed for the appraisal upfront and ready to go when the order is placed. This includes everything from sales contracts to plans to specs. Secondly, if it’s not a purchase, and there are property complexities (like the ones mentioned above), telling the appraiser upfront is an enormous help. Otherwise, the lack of information might present a bump in the road that makes the appraisal process take longer.

2. Set your expectations

Understand your market and communicate with other appraisers in your area, so as a lender, you understand how long an appraisal might take at any given point during the year. If you know what to expect from the beginning, you’ll set your expectations from the get-go.

Pro tip: Use our  benchmark report as a guide for how to benchmark yourself against the industry in your area.

3. Consult an expert

Consider hiring an appraisal management company like MountainSeed to further automate your process. An AMC’s job is to facilitate an appraisal order from start to finish. The bank’s job is to do all of the work on the forefront as well as on the closing end. If we’re speaking in fishing terms, the bank reels-in the fish, the AMC cooks it, and then the fish (the appraisal) is given back to the bank to serve it. The AMC handles middle part of gutting and preparing the fish, so the bank can focus on getting more hooks and baiting more clients. If a bank has to focus on getting new clients, closing orders, and making sure the appraisal comes in on time, that’s a lot on its plate. Instead, the AMC can come in alleviate some of the cooking responsibility, and in turn, give the bank the fastest, highest quality product.

Often times, AMCs are viewed as only working to benefit other AMCs. While this might be true of some AMCs, MountainSeed prides ourself in being different. We only work with lenders that have a prefered panel of appraisers. We don’t want to close an appraiser’s relationship with the bank or a bank’s relationship with an appraiser. At MountainSeed, the appraiser still gets paid by the lender, and they set their fees. We also have a review department that is filled with appraisers that have an average of 30 years of experience, and we have MAIs. We are people who have been in the trenches; we get it. We’re all working together, AMC, bank, and appraiser, to do the best we can do for the bank’s client – the property buyer or refinancer. It’s a wonderful relationship.

Ready to stop watching that boiling pot, reduce your appraisal turn times, and keep your customers happy? Let’s talk more. We’d love to help you cook those fish, so you can do more of what you do best: reel them in.