It’s your house (or will be your house) so it makes sense that you would want to choose the appraiser.
Sometimes that’s possible and sometimes it’s not.
This answer is not clear so let’s get into the how and why process of picking the appraiser…
For starters: The client will choose the appraiser.
Our clients decide who the home appraiser will be based upon the reason for the property appraisal.
Additionally, the method of choice depends on the regulations that are in place for the reason of the appraisal.
So, one of the first questions that I will ask a potential client when they contact us is this: “What is the reason or purpose for the home appraisal?”
And then, many folks will respond: Because I want to know what it’s worth.
Which is a very reasonable answer.
So, next I will ask: Why do you want to know what it’s worth?
And the answer is very important because it will help me to understand how to best serve my Client.
Here are a few examples…
If you are refinancing or buying a home the typical process goes like this:
1. You decide which Lender (mortgage company) to use.
2. The Lender decides if an appraisal is necessary.
3. If the Lender decides an appraisal is necessary then, they will hire an appraiser.
It does not matter who pays for the appraisal – in this case the Lender is our Client.
Which means, in this situation, the Homeowner or Home Buyer does not choose the Appraiser.
How does the Lender choose?
Generally speaking the Lender must have a process of choosing a random appraiser ensuring no undue pressure.
There are different methods the Lenders use for hiring and it would be in your best interest to ask questions about how they assign an appraiser.
Here’s a great question to ask the Lender:
“Exactly how much of the appraisal fee goes to the appraiser?”
Example of an acceptable answer: The appraiser receives 100% of the fee.
Example of a different answer: We have an appraisal management company that handles the appraisals.
Head’s up – it’s a red flag if your Lender uses an appraisal management company…. and you should ask for a detailed breakdown of your appraisal fees.
Here’s why…. if the appraiser is not receiving 100% of the fee this means the Lender has most likely contracted with a company that is looking to hire the lowest bid….
Which may not only lead to a quality control issue….
But also, prolongs the entire process and could cost you more money in the end.
Not to mention, this process offers zero benefit to the homeowner or the home buyer.
Fortunately, not all lenders operate this way so it’s definitely something important to consider when choosing a mortgage company.
Good news, there are many other situations in which the Homeowner may choose the appraiser!
Here are a few examples:
- Tax Appeal
- Inheritance Taxes
- Divorce
- PMI Removal
- Wealth Management
- Exercising due diligence when deciding on a List or Purchase price
Feels good to have options, right?
Here are a few important things to consider when choosing a Property Appraiser:
Your house is probably the most valuable asset you own.
So, instead of shopping for the cheapest and the quickest, look for an appraiser that is highly communicative, detail oriented and provides reports that are well supported and defensible in court.
Also, you could start with reading their google reviews 😉
“Attitude is a choice. Happiness is a choice. Optimism is a choice. Kindness is a choice. Giving is a choice. Respect is a choice. Whatever choice you make makes you. Choose wisely.”
Roy T. Bennett, The Light in the Heart
