Contributed by Amy Guinn
Gwinn & Associates
Q. Comps are important in setting the home value. How many comps does an appraiser need?
A. Appraisal reports require 3 comparable sales. Currently, our market area is considered by most lenders to be a “soft” market which may be declining. Residential appraisers in our market area are required to include 3 comparable sales, of which, 2 of the comparable sales must have closed within 90 days of the appraised date. An additional active listing or pending sale must also be included. FHA loans require 3 comparable sales (2 less than 90 days) and 2 active listings or pending sales. If these requirements cannot be met, a detailed explanation is required.
Q. How long does an appraisal generally take to complete?
A. Most lenders request that the appraisal report be completed 48 hours after the appraisal inspection date. This time frame may be extended as required by the complexity of the property appraised.
Q. How does the appraiser get selected by the lender?
A. May 1, 2009, the Home Valuation Code of Conduct (HVCC) was put in place by Fannie Mae relating to appraisals for loans delivered to Fannie Mae. According to the Fannie Mae FAQs sheet, March, 2010:
“Lenders may use a pre-approved list or panel to select a residential appraiser, provided that any employees of the lender asked with selecting appraisers for the list are independent of the loan production staff and the loan production staff is not involved in selecting appraisers off the list for particular appraisal assignments.” Lenders comply with this requirement in varying ways.
Q. What qualifications/certifications are appraisers required to have?
A. Appraisers are first required to complete the requirements of a Registered Trainee Appraiser.
Registered Trainee Appraisers must successfully complete 100 hours of board-approved (State of Florida) courses, be 18 years or older, have a high school diploma, and register with the firm or business name where they conduct appraisal services. Registered trainees must work under the direct supervision of a Certified Residential Appraiser.
Certified Residential Appraisers must sucessfully complete an additional 200 hours of board-approved (State of Florida) courses; have a 2 year Associate College Degree or higher; provide evidence of 2,500 hours of real property appraisal experience obtained over a 24 month period; experience claimed must have been acquired no less than 24 months; pass the Residential National Exam and the Florida Supplemental Exam.