Appraisal Management in Private Lending

Appraisal management forms a valuable service for many of the larger lenders.

However, as brokers find out when they work with MIC’s and private lenders, appraisals are ordered directly from the appraiser.  And in fact, appraisal management companies are not generally used.

But why is this?

It all stems from the fact that MIC’s and private lenders rely primarily on the value of the property in their lending decisions.  Due to the importance of property value in the eyes of the private lender, (not to mention all of the other property information revealed by an appraisal), a direct relationship with appraisers is crucial.

With these important relationships in place, lenders are then able to contact the appraiser directly.  This allows for them to have more candid discussions about their opinion of the value of the property in question.  When these relationships are developed, it also allows lenders to make the appraiser aware of any special requirements that the MIC or private lender may have.

One major benefit of working directly with the appraiser instead of using appraisal management, really sticks out for lenders…

And that is, that we can still make deals happen when the narrative of an appraisal alone wouldn’t have been able to tell the whole story.

Through this specific relationship, we are able to work with the appraiser to customize assumptions and address any property concerns.  We can work together to find a value that satisfies the lender and keeps a deal together.

It’s definitely more work for lenders to manage their own appraisals.  However, ultimately, it’s all about the trust of a one-on-one relationship that gets the deals done.

And as always, if you have any questions, contact the lending experts at Kokanee Mortgage.  Our underwriters have the experience and knowledge to help with all your lending concerns.