Appraisal Wait Times: The New Normal

We have a new normal in Jefferson County, WA:  three week turn-times for appraisals.

Our appraiser pool was recently cut in half (one retired and one moved to Michigan).  So we're down to two licensed appraisers in the entire county.  Luckily, there are a few appraisers in Clallam and Kitsap that will make the drive.

But three week turn-times have become the new normal.  The days of getting an appraisal in a week are over.

And like many things in our county, buyers are paying more for appraisal reports.  The more a buyer spends, the more likely they are to end up with a local appraiser.  The average price charged to the buyer in my totally unscientific, not-random survey of local mortgage professionals:  $856.25.  (I've heard rumors of buyers paying $1,200 in Sequim.)

What can you do?

• Be patient.  Explain the reality to buyers and sellers.  And plan closing dates accordingly.
• Encourage your buyers to stay local.  Local appraisers work for local lenders because those lenders send them the most business and they know the lenders' process.

Each Appraisal Management Company (AMC) and each lender have specific requirements for their appraisal reports.  One appraiser explained that one AMC wants a picture of the street outside of the home from the left and from the right.  Another AMC requires the pictures of the street to include the driveway.

It's too hard to remember the requirements of many different AMCs.  So appraisers only work for the AMCs that send them the most business.

Banks, lenders, and mortgage companies who don't do a ton of business in Jefferson County are more likely to rely on out-of-area appraisers.  These are the transactions where the appraisal takes six weeks, the appraiser is from Olympia, and the value comes in $20K low.

• Love your local appraisers.  They're seriously working their butts off right now.  Try to make it easy to schedule access to properties, answer any questions they have, and tell them thank you.  They're doing a great job!