Choosing an Appraiser
This has become a sticky subject since the mortgage market fell and it was determined that lender fraud had taken place across the country. Originally, the lender would order the appraisal – the buyer nor the seller could order an appraisal because this could be deemed a conflict of interest. In other words, the appraiser could not be ‘working for’ any particular party to the transaction. Now, even the lender cannot order the appraisal and in many cases a third party company is used to choose an appraiser for a transaction. The appraisers are chosen by what is near to a lottery system in order to ensure a random choice.
Unfortunately, this sometimes results in an appraiser being chosen that is not as familiar with the local market as each party would like. Appraisers are generally very knowledgeable about how to establish market value. Sometimes, the agents can offer some supportive factual material to help support the appraiser’s determination, but this is a touchy subject too.
In the end, everyone simply ‘hopes for the best’.