Navigating appraisal challenges in today’s housing market
The booming real estate market has created a high demand for appraisal services. This is good news for lenders, but it puts a tremendous amount of pressure on appraisers who have to be diligent in their work, while also meeting closing dates. HousingWire recently spoke with PCV Murcor Founder, President and CEO Keith Murray and COO Cindy Nasser on how the appraisal process can be streamlined in today’s tight housing market.
HousingWire: What’s the biggest pain point appraisers are currently facing?
Cindy Nasser: The greatest pain point in some areas is the demand for services and the shortage of appraisers. We have seen unprecedented refi volume due to low mortgage rates, which has caused an increasing demand for appraisal services. Appraisers are under a tremendous amount of pressure to turn around appraisals quickly so that lenders can meet their closing dates.
HW: How is today’s tight purchase market affecting the appraisal process?
Keith Murray: The effect of the tight purchase market is keeping up with the rising home prices; created by the lack of supply and bidding wars. Appraisers have to be diligent in their analysis and focus on the listing activity along with sold comparables. Appraisals tend to look in the rearview mirror of comparable homes sold in the last six months to a year. That approach does not work in some of the busiest markets. Arriving at the right value includes proper analysis of the listing activity.
HW: Have you witnessed a rise in the gap between appraisal and what buyers are willing to pay, and how is this impacting appraisal companies?
CN: We have not seen an uptick in appraised value gaps to the purchase price. PCV has an experienced staff of licensed and certified appraisers that QC the appraisals. If for some reason the appraised value comes in below or significantly above the purchase price, extra quality control is performed on the appraisal. If there are concerns within the report, our QC staff quickly identifies and works with the independent appraiser in the field, asking the appropriate questions to understand the appraiser’s value conclusion, then works with the appraiser to resolve any issues.
HW: When you look back at your 40 years in the valuation industry and as the first, if not only, black-owned national AMC, what has been key to your success and stability?
KM: First and foremost, our commitment to providing exceptional service and partnership to our clients. Having a high-touch customer service model is one of the tenets of the foundation of our culture. With changes in appraisal regulations throughout the past couple of decades, specifically for AMCs, it is a necessity that you can adapt, not only for compliance but also to clients’ needs.
PCV Murcor helps move the appraisal process forward, while still improving quality and mitigating risk and compliance exposure. For almost 40 years, the company has helped clients and their borrowers make their real estate needs happen through accountability, connectivity and performance
The post Navigating appraisal challenges in today’s housing market appeared first on HousingWire.