Appraisal management forms a valuable service for many large lenders, however, as brokers find out when dealing with MIC’s and Private Lenders, appraisals are ordered directly from the appraiser. Why is this?
MIC’s and Private Lenders rely primarily on the value of the property. Because of the importance of property value, (and all of the other property information revealed by an appraisal), a direct relationship with appraisers is crucial. With these relationships in place, lenders can phone the appraiser directly for candid discussions about their opinion of value. These appraisers also know any special requirements that lenders may have.
The real benefit is that we can make deals happen where the narrative of an appraisal wouldn’t necessarily tell the whole story. We’re often able to work with the appraiser to customize the assumptions to address concerns about a property and find a value that satisfies the lender and keeps a deal together. It’s definitely more work for lenders to manage their own appraisals, but ultimately, it’s all about the trust of a one-on-one relationship that helps get deals done.