If you read the real estate news, you already know that as of today- we have a shortage of real estate appraisers on a national level. This is a big deal in our industry because without appraiser, the price of getting someone to view a home not only goes up, but the time for him or her to evaluate the home increases too. Basically, the home buying process is slowed down and becomes more expensive as a result.
The decline in appraisers is a national issue. The Washington Post reported the number of active appraisers has dropped 22 percent from 2007. Sure, I am sure the housing bubble had a lot to do with this, but that bubble has busted almost ten years ago and home sales are on an uptick right now.
According to the Kitsap Sun, “Professionals in the field point to several factors to explain the decline. For starters, appraisers tend to be older and many are leaving the profession, said John Gordon, president of the Seattle Chapter for the Appraisal Institute.”
When you work with Sam Benson Realty, I can help point you in the right direction to find an affordable and available appraiser. Your next question may be,”why do I even need one”? Well, appraisers are important for many reasons. According to BankRate.com, “It will give you an idea of what may be wrong with it, but to share with the appraiser to help determine the most accurate valuation. If the place is in worse shape than you thought, you can back out before the appraisal occurs. (It usually takes more time to arrange appraisals than inspections.) Your contract will have various contingency deadlines that you need to understand in order to act accordingly. Your agent, who I hope gave you a market analysis before you made your offer, should help you with this, too.”
Getting an appraisal is important, which is why the lack of appraisers is such a trending news item in our field right now. Think about it, if the appraisal comes in relatively low compared with the cost of the home, or the house is deemed hazardous or risky in any regard, the bank might kill the deal, regardless of your creditworthiness — even if you were prequalified (conditionally approved for a mortgage amount). Remember, the bank is taking a risk too and based on the appraisal of the home, the bank will decide if they can get their money back in the worst case scenario.