In person viewings

What to expect:

A full home appraisal will likely require an in person viewing by one of our appraisers.  We will attempt to book an in person viewing giving as much notice as possible, a minimum of 24 hours is the usual standard, in particular where the property is tenant occupied.  Exceptions may be made depending on circumstances.   Most standard home viewings will take less than one hour and some larger residences or with multiple outbuildings may take longer.  

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Can I get a copy of the report ordered for XYZ Lender? 

What to expect:

We get this question all the time and we understand the answer can be frustrating as often the applicant/ borrower is paying for the report.  Unfortunately we are not permitted to share the report, any conclusions or opinions we may have formed as a result of the assignment with anyone other than the "Client" (the party that orders the report and sets out the terms of the assignment)/ Lender without their written consent.  Likewise they are not allowed to share the report without the appraiser's consent.  This is both an ethics standard of our professional association we must follow and in almost all cases with major lenders it is a contractual obligation.  We are able to discuss and explain the appraisal process and why we may need certain information but we cannot share or discuss any conclusions from our assignment.

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Restricted Appraisal/ Scope of Work? 

What to expect:

A restricted appraisal report is most often commonly requested as a Drive-by or Desktop. Although a lender may request a Restricted Appraisal Report, it is the appraiser's obligation to determine if a reasonably probable value can be provided based on the information available.  With the exception of the actual physical site visit the research and analysis required does not change with a Restricted Appraisal Report.  For lending purposes your lender may have determined that they have sufficient security possibly due to a low ratio mortgage where they are only lending on a small percentage of the estimated value however, the appraiser must determine the actual value which is not based on the loan amount.

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Acreage Appraisals Hypothetical Conditions and Limiting Conditions

What to expect:

Various lenders handle the appraisal of acreages differently so be sure to understand how your chosen lender determines what they will lend on.  Even the major lenders ie. the big 5 have widely varied instructions to appraisers about limitations on what they may consider to provide value, and some may offer different products that have varied levels of acreage and outbuildings they may allow to be included.  Some lenders will allow the full acreage and include all outbuildings considered as residential use, excluding commercial use buildings or structures, and most often the maximum acreage is 160 acres. 

Some will limit to a set number of acres ranging from 5 to 15 the appraiser is to limit the value to and exclude all outbuildings other than an attached garage or if none attached a detached garage.  

Unfortunately, in some cases this can be a very large difference in value and if the borrower is not aware or does not fully understand these limitations it can come as an unpleasant surprise and in the case of a purchase may cause a sale to collapse.

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The appraiser wants a copy of the purchase and sale agreement.  Is this allowed? 

What to expect:

Not only is this allowed, in fact, it is a requirement. There appears to be a myth that appraisers are somehow to be kept in the dark and not be provided a copy of the current offer or conditionally agreed purchase price. There may be circumstances where the client may request that the appraiser not have access to this information however, ordinarily the appraiser is required to not only request this information but they must also document the steps they took to obtain it through commercially accepted and legal methods. It is common practise for participants in a sales transaction to "inform" the appraiser as to the sale price therefore, it is already a rare occurrence that the appraiser may not be influenced. It is the appraiser's obligation to support their conclusion of value based on credible research, analysis and calculations and to be impartial to any party or undue influence. 

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Covid-19, Alternate/ Modified Viewings

What to expect:

Covid-19 has disrupted many industries and we are all working to adapt. We remain committed to our profession and clients while adapting to new requirements. In the event of increased public health orders, we are well adapted to accommodate. During prior restrictions we remained successful at completing hundreds of assignments using alternative viewing techniques while maintaining the integrity of our reports. The most successful method we utilized was to have the occupants use our video recording device to tour the interior of their home. This method provides us with high quality video allowing us to determine the quality, condition and floor plan of the home far better than any other method we tested and only second best to an in person viewing. Wherever possible we prefer to attend the property and perform a full viewing of at least the exterior and any portions of the property we are able to access.

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