Over the last year and a half, appraisals to determine a property’s value have been a hot commodity. With the demand for housing and a hot real estate market in New Mexico, getting an appraisal order back has been nightmare for many borrowers.
Appraisers are running at full steam but there are too few appraisers trying to keep up with too many orders, and because of this, the turns time to get the appraisal completed and the price to do it have gone through the roof.
Although the turn times are getting better in the metropolitan areas, rural appraisals are still behind, taking more time than any one involved in the home buying and financing process would like. At Indigo Mortgage, we want to warn borrowers purchasing or refinancing in rural areas to be prepared to wait on an appraisal, sometimes up to 2 months. And when they can actually find an appraiser to take an order for a new appraisal, a borrower is now paying between $1000 and $1500; just a few years ago, that cost was more likely 600.
This is not price gouging by appraisers but due to the fact that they are so overwhelmed by so many orders, they must charge higher fees to justify the travel time and overtime work. Remember that lenders have no control of appraisals and there is a firewall between lenders and appraisers. We as lenders cannot even talk to appraisers, appraisals are assigned by appraisal management companies and they manage all aspects of appraisals. In other words, don’t blame the lenders for long turn times on appraisals, just be prepared to wait it out. With the rest of the process, the parts that we can control, you have our word that Indigo Mortgage will work promptly and keep you informed. Our goal is to make your mortgage application smooth and provide the best deal for your situation.