A: Most appraisals are ordered by lenders, who use the information to determine the collateral value of a home when deciding whether approve a mortgage loan. But consumers can also order an appraisal, and might choose to do so for a number of reasons. Among the most common is to help them decide on a fair price for a home they wish to buy or sell.
Q: What should I look for when I hire an appraiser?
A: First, look for an appraiser who is licensed and certified by
your state. Most states have an appraisal board that should be able
to provide an appraiser's qualifications, as will the Web site of
the federal Appraisal Subcommittee: http://www.asc.gov/
Q: Will that Web site tell me what I need to know?
A: Yes and no. The Appraisal Subcommittee's Web site will
feature information about an appraiser's qualifications. But it
will only list disciplinary action that is current. Suspensions and
other past disciplinary actions won't be listed.
Q: Can't I get that information from my state's appraisal board?
A: Not really. State appraiser boards are generally reluctant to
release any information about an appraiser's disciplinary history.
That includes how many complaints have been filed against an
appraiser.
Q: So, how can I make sure I'm getting a fair appraisal?
A: That's a tough question. To start, make sure your appraiser
is independent - don't allow a lender to pick the appraiser. Also,
use a commonsense test. If the home next door just sold for
$150,000 and the appraiser values the home in your deal at
$200,000, you have reason to be suspicious. You can also hire
another appraiser for a second opinion.
Q: If I have a complaint, whom should I contact?
A: Every state has an appraisal board or agency that accepts and
investigates complaints, holds hearings and disciplines appraisers.
Some states, however, do not accept anonymous complaints, and
disputes can take years to be resolved.
