In 2019, it was reported that appraisers had a 4% increase in business. Now fast forward to 2020 where current homeowners are scrambling to refinance their loans, and potential homeowners are swelling in ranks.
Can you imagine what that 4% has increased to? Some lenders are even reporting an appraisal turnaround time of almost 30 days versus the 5 to 10-day standard.
So, what gives? Read further to find out!
What does an appraiser do?
First things first, what does an appraiser do?
Once your offer is accepted on your dream home, it is then time to find out just how much it is worth. This is required by most lenders.
Some loans, such as FHA, will not lend you more than what the appraisal comes back at.
An appraiser determines the current value of a property before a home sale. To figure this number out, they will perform an on-site inspection.
Read more about the job duties of an appraiser here.
Low rates
Appraisers are getting business form both ends. Current homeowners interested in refinancing, and potential homeowners trying to find their dream home.
Read more about mistakes to avoid if you are considering refinancing.
Just like the inventory of homes on the market may be scarce right now, the amount of appraisal specialists are outweighed by the mortgage demand.
It is hard for an appraiser to make it out to a property if they have dozens more lined up on their schedule.
Additionally, in accordance with CDC guidelines some appraisals may be done remotely.
Appraisal waivers may be an option to speed things up but are not always encouraged.
Filling the demand
Some lenders have even opted to reach out to third parties because their appraisers and underwriters have been so slammed.
Working with different business professionals means figuring out the kinks between the ways another company may do things.
Lori Noble of findmyappraiser.com says that urban areas are feeling these strains more than suburban areas.
So, if you are at a bit of a standstill during your closing process – be patient! Appraisers and lenders are working as hard as they can during these unprecedented times.
To learn more about the closing process during COVID-19, click here!
