When the coronavirus pandemic arrived, it threw everyone for a loop practically overnight. While mortgage lending and real estate businesses were declared part of “critical sectors”, we all had to find overnight solutions to some unique and scary challenges. Although Results Mortgage loan originators have not had to experience the same challenges as Sales Executives, we have been busy creating, and allowing for, alternative business processes to keep the market moving. Our property appraisers are coping with social distancing and lockdowns like we are, but with a different set of limitations. While traditional, in-person appraisers deliver the most accurate results, they are not always possible.
Here are how our local appraisers are safely working to keep your closings on track and running smoothly.
Since HUD, Fannie Mae and Freddie Mac relaxed their appraisal guidelines in response to the coronavirus pandemic, appraisers are now allowed to do drive-by and desktop appraisals for FHA, VA and Conventional loans. A drive-by appraisal doesn’t mean that an appraiser will take a 10-second glance at your seller’s home before hitting the McDonald’s drive-through – he or she will be utilizing some of your same methods as Sales Executives, for deciding a property’s value. These may include researching public records, exterior visual inspection and MLS information. These alternative appraisal options help to ensure your sellers feel safe, as well as the appraisers, when possible.
Do you want to make sure your seller’s appraisal is accurate?
If a homeowner has carried out some major improvements, the appraiser will want to know, whether they visit in person or prepare a drive-by or desktop appraisal. This means that if your seller’s just replaced the HVAC system or had the property rewired, ask for detailed receipts of these improvements. We’ll make sure the appraiser receives and incorporates them into the valuation.
In addition, if any appraiser feels that a traditional inspection is the only way to go, they may turn down an assignment if a nervous homeowner won’t allow them indoors. This sort of scenario may slow down or even kill a sale, especially if a seller can’t provide sufficient information about the property. Any appraiser sent to your client’s home from Results will be following all standard COVID-19 safety guidelines, so it’s a good idea to assure your seller clients ahead of time.
If you have questions about how we handle your client’s appraisals, let us know at ResultsMortgage.com, or by calling 952-800-8348. Working with RE/MAX Results professionals and their clients make my job especially rewarding.
Written by Lance Smith, President of Results Mortgage and a 20-year industry veteran.
With a culture of teamwork and focus on borrowers’ needs, Results Mortgage’s mission is to make each partner and client a top priority. Results Mortgage distinguishes itself through its diverse platform of products and quality service that results in 95% of approved borrowers closing on their home purchase. By creating seamless, simple internal processes that benefit every customer, Results Mortgage has grown quickly as a top mortgage lender in the Greater Minneapolis area, with a 155% year-over-year growth in closing volume.