Let The Borrower Pick The Appraiser

[Michigan CG]

And it will be the borrower's responsibility to call and interview the appraisers on the list and decide which appraiser to "hire"....based on fee, due date (obviously the due date will have go reflect rate locks), appraiser's personality, availability, etc......

You forgot skills and knowledge. Local banks most of the time know the strengths and weaknesses of the appraisers on their panel. The bank wants to give out the loan just as the borrower wants the loan.

What happens when the consumer picks UC Bruin for the 8,000 SF house on 29 acres?

 

[Terrel L. Shields]

Suspend reality....

OK

 

[J Grant]

Borrowers picking the appraiser is a terrible idea. Much as i dislike present system, it;s a terrible idea for many reasons.

Borrowers will be as happy to pick an idiot who will save them $25 by bidding lowest as an AMC is. Let alone the borrower who will by picking the appraiser who promises, even by hinting, the highest value.

 

[ucbruin]

OK, let's play the what-if game and assume such a process could be enacted.

So you'd prefer to not bid your services to a lender that, believe it or not, is more concerned about credible assignment results and regulatory compliance and will continue to be in business if they don't make that specific loan...
vs.
Bid your services to the homeowner for a financial transaction that is, in most cases, very significant to them and involves a high level of emotional factors?

I'll take door number one each and every time.

You forgot skills and knowledge. Local banks most of the time know the strengths and weaknesses of the appraisers on their panel. The bank wants to give out the loan just as the borrower wants the loan.

What happens when the consumer picks UC Bruin for the 8,000 SF house on 29 acres?

Borrowers picking the appraiser is a terrible idea. Much as i dislike present system, it;s a terrible idea for many reasons.

Borrowers will be as happy to pick an idiot who will save them $25 by bidding lowest as an AMC is. Let alone the borrower who will by picking the appraiser who promises, even by hinting, the highest value.

From the small sampling of responses I notice a couple glaring issues....

1. It's obvious to me that folks haven't read or didn't comprehend what I wrote....
2. It's obvious to me that folks must believe that at their core, appraisers are unethical and can't be trusted to perform a credible report and providing an honest opinion of value.....

That's sad....

 

[ucbruin]

Borrowers picking the appraiser is a terrible idea. Much as i dislike present system, it;s a terrible idea for many reasons.

Borrowers will be as happy to pick an idiot who will save them $25 by bidding lowest as an AMC is. Let alone the borrower who will by picking the appraiser who promises, even by hinting, the highest value.

"Borrowers will be as happy to pick an idiot who will save them $25....."

Maybe some will and maybe some won't....
In the past you've mentioned that you don't always pick the lowest priced item or service....

 

[J Grant]

Yeah well sadly that is the case. not all appraisers, but enough to matter. And too many borrowers are greedy, cheap and moreover do not understand appraising, meaning they will hire the cheapest or those who promise a higher value much of the time.

 

[ucbruin]

You forgot skills and knowledge. Local banks most of the time know the strengths and weaknesses of the appraisers on their panel. The bank wants to give out the loan just as the borrower wants the loan.

What happens when the consumer picks UC Bruin for the 8,000 SF house on 29 acres?

Of course the lender will know the skill and knowledge level of their approved appraisers.....
That's why I wouldn't be on the list for this type of property.....
I would imagine that the lender would prefer a CG to complete the assignment....

 

[ucbruin]

OK

And you!!!!!!!

 

[Terrel L. Shields]

 

[Gobears81]

I know the OP isn't big on hearing about commercial, which makes me doubly eager to interject my thoughts on that side Whether admitted or not, borrowers often choose appraisers more on the commercial side, particularly for the smaller banks. They don't usually call to interview, but often they have preferred appraisers and not coincidentally, that appraiser is probably going to be the one doing the work. There is one client that sends over bids and when we see that so-and-so owns it, we don't bother bidding simply because we could put anything and the borrower is going to opt for their favorite guy.