Bank appraisals are not completed for consumers and home buyers.
Bank appraisals are not completed for the benefit of consumers. They're owned by the bank and used for their collateral risk decisions. Make sure to order your own appraisal when buying a home or investment property.
What Homebuyers and Investors Need to Know
Some banks don’t order appraisals anymore!
That’s right. Many home buyers believe banks will order an appraisal when they apply for a mortgage to buy a home but some banks are using AVMs (Automated Valuation Modules) or out-of-the-area “valuers” in the mortgage process.
These valuations are not performed for your benefit, they are only used by the bank for their underwriting decisions. You should not rely on them to make your purchase decision. You need a properly trained market expert. You need a local Appraiser. We have the best!
Look at what the American Bankers Association (ABA) has to say about a bank appraisal!
“Although there may be some ancillary consumer benefit to a bank-ordered appraisal, the reality is that, in real estate transactions, the appraisal is not ordered for the benefit of the consumer, but rather, for the benefit of the lender. Consumers may, and are often advised to, obtain an appraisal for their own use as outlined in the Purchase and Sale agreement.” –American Bankers Association
What does this mean?
Consumers and investors should not rely on a bank’s valuation to make a purchase decision.
Don’t overpay for the property; it’s too easy to do in “heated” markets! Make sure your investment calculations are accurate. Get a complete neighborhood analysis that can’t be provided by an “AVM”.
Get the big picture from a local market expert that is not commission based and acts as a neutral third-party to protect your interest in the transaction.
Tell your real estate agent, I need to “Find My Appraiser” and order my own appraisal before I buy this home!