The Appraisal Institute commends the National Association of Homebuilders for creating guidelines to foster increased cooperation and information sharing among professionals that play a key role in the home buying process.
NAHB recently announced guidelines to enhance builder communication with appraisers and lenders to help ensure reliable, credible valuation of newly built homes.
The guidelines suggest that builders meet with the appraiser at the home site and provide direct support for the asking price with whatever relevant information is available. Builders are asked to provide the appraiser with all appropriate comparable sales, market and absorption data, property specifications, materials used within the property and why they were chosen, buyers’ reaction to products selected and sales information.
The NAHB warned builders that not providing enough data to an appraiser is one of the most significant errors they could make.
The guidelines advocate that homebuilders insist that their lenders use qualified, designated appraisers who are experienced in their local area and who understand new construction and green building values. Appraisal Institute members can earn MAI and/or SRA designations, which are considered to be the gold standard in the valuation profession.
While many lenders have relied on appraisal management companies in recent times, the NAHB guidelines reinforce that it is in the best interest of consumers and industry professionals to have a local appraiser with the necessary knowledge and experience assigned to provide a reliable opinion of value for homes in their area.
If you have an “opinion of value,” please share your comments.