Pre-offer Appraisals

[Deleted member 130081]

Pre-Offer Appraisals. I have been talking about them on other threads and thought they deserved their own.

I have been aggressively marketing Pre-Offer Appraisals. Anytime anyone asks me anything about appraisals lately, I always go to the Pre-Offer Appraisal.

"Did you get an appraisal before you made an offer?"
"You should get an appraisal before you make an offer."
"The mortgage appraisal will not inform you of the market spread or probable range of value and you will not know if you got a good deal or not."
"Appraisals defined as a probable range can be more meaningful than an appraisal defined as a price."
"Banks understand an appraisal defined as a price is only so reliable, and if you want to borrow more than 80% of the appraised value, you also must purchase mortgage insurance."
"I can do a Pre-Offer Appraisal for as little as $100 and get them back the same day in many cases."

Those are some examples of things I say to people lately. People just don't know what they don't know. If people did know this stuff, we might be able to curb or even eliminate the real estate boom/bust cycle. I think we owe it to everyone to get the public informed on real estate markets and appraisals.

I would like to ask each and every appraiser on this forum and everywhere else in the USA, to start educating the public and aggressively marketing Pre-Offer Appraisals. (Not to be confused with pre-listing appraisals or contingency appraisals either.)

 

[Deleted member 130081]

Pre-Offer Appraisals. I have been talking about them on other threads and thought they deserved their own.

Botched edit.

 

[J Grant]

I agree appraisers could not come up with the large $ or organization to come out with a Zillow type site.

But perhaps if enough appraisers could be convinced it would be beneficial to spend $100 a year or so for a professional public oriented website with links from mortgage lenders/other RE sources, educating about what appraisers do and recommending some various products to contact local appraisers ( and then the names of contributors can be listed ) for products such as pre list or pre offer short form appraisals or consultations.

 

[Mike Kennedy]

"If people did know this stuff, we might be able to curb or even eliminate the real estate boom/bust cycle."

Your heart is in the right place but as long as the Contract Price Bull$eye lives...........any attempt to change the collusive current system is doomed.

 

[Eli]

"If people did know this stuff, we might be able to curb or even eliminate the real estate boom/bust cycle."

Your heart is in the right place but as long as the Contract Price Bull$eye lives...........any attempt to change the collusive current system is doomed.

Idk there. You know I cherish your position because I have heard it so long and it has merit in some ways.

But, I can see how on both buyer and seller side, an independent appraisal with the buyer or seller as client would help things too.

I wonder if somebody other than the bank (lender) shouldn't be the client on mortgage purpose appraisals sometimes.

I look at VA and their success rate and how they operate and it tells me who is client is important to independence. HUD is that way too but a lesser degree imo. Anyway, you get my point I hope.

Your issue is sewed in USPAP. I don't know even if it wasn't, if the appraiser wouldn't find out through the normal course of business.

 

[TRESinc]

I wonder if somebody other than the bank (lender) shouldn't be the client on mortgage purpose appraisals sometimes.

why would the party lending the money not be the client? that's absurd.

 

[Eli]

why would the party lending the money not be the client? that's absurd.

If you look at the mortgage fraud in history that was instigated by the people loaning the money? You tell me.

 

[CindyR]

"I can do a Pre-Offer Appraisal for as little as $100 and get them back the same day in many cases."

And why would anyone be offering to do appraisals for only $100??

 

[Mr Rex]

Just completed an appraisal @ $155k that the owner paid $230k cash in 2009. Out of town buyer with no knowledge of local values gave away $75k.

 

[TRESinc]

If you look at the mortgage fraud in history that was instigated by the people loaning the money? You tell me.

that's not even a complete sentence. only someone as intelligent as you would think that the entity ordering the appraisal should be anyone other than the party who is lending the funds secured by the property.