I’ve complained loud and long about the Home Valuation Code of Conduct (HVCC) and its impact on the mortgage-loan-seeking-public. For those not aware or as incensed about it as I am, HVCC (although an originally well-intended change), has basically caused some unintended consequences.
Unfortunately, the ramifications include leaving essential home buying appraisals to inexperienced appraisers who are unfamiliar with the area surrounding the home they are appraising.
This has caused a multitude of issues resulting primarily in lower than valid valuations and increased expenses for the buyer. It has also caused untold numbers of missed closing dates due to the need to obtain a new lender who has to dispatch a new and adequately experienced appraiser.
Bottom line: HVCC has created more problems than it has solved. What we have been recommending (and what some Realtors have been doing very effectively) is basically to force the appraiser to call them. They are accomplishing this by removing the lock box before the appraiser is scheduled to visit the subject home. This has given the Realtor the opportunity to meet the appraiser to give him or her access and to furnish them with a comprehensive package of comps and realistic data to assist with the assessment.
Some appraisers reject the information while others welcome it whole heartedly; it saves them time. Although a Realtor is not allowed to actually discuss values with the appraiser, it is appropriate for them to provide data to help with valuation.
There is nothing unethical about this practice. It enables the make or break point in the home buying process to continue to its natural conclusion. Because if your home doesn’t appraise for what you’re borrowing, you ain’t going nowhere.