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Appraiser Competency Content provided by: Amber Johnson of Caddell Appraisals Inc.
Although appraisals are done for many reasons, most homeowners are familiar with appraising their home when applying for a mortgage in a purchase or a refinance. You can no longer order an appraisal yourself and then use that appraisal when shopping with lenders. In 2010 Dodd-Frank, as part of its widespread consumer protections as a result of the financial crisis, legislated the concept of appraiser independence into law. This legislation restricts who can order the appraisal in a loan transaction: lenders can’t pressure an appraiser to hit a predetermined value in order to receive work in the future, consumers can’t get their own appraisal for a loan, and reputable professionals now have a structure between them that creates order rotations, shot-gun order bids, increased costs to consumers and decreasing profits to appraisers who are retiring faster than new ones can be trained. Dodd-Frank is a consumer protection act. You have the right to insist on a local appraiser with any lender. If you question the geographic competency of the individual the order is placed with, you have the right to deny their entry into your home either at the time they schedule the appointment with you or when they try to visit your property (although at this point a fee for their trip might be incurred). Once an appraisal is completed it is much harder for the lender to challenge the appraisal because of DoddFrank’s protections against pressure. If your home is being sold, make sure your agent questions the appraiser about his or her geographic competency before they set the appraiser’s access appointment. Knowing where the appraiser lives and where their office is based is a great place to start. Also knowing how many appraisals they have done in the Estes Valley, how frequently, and how recently help. And if those answers aren’t reassuring, ask them a question about Estes Park a local could answer but a visitor would struggle with. When in doubt, keep them out.
Just as in other professions, having a license or certification from the state on its face does not guarantee quality or competency. In the Estes Valley the appraiser’s geographic competency is critical to an accurate appraisal. A lack of local knowledge will cause an appraiser to miss entirely or misinterpret critical factors in the value of the property such as: public or private utilities, views, HOA restrictions, condition of comparable sales, and land values. An appraiser lacking geographic competency in the Estes Valley might wrongly state that a septic system negatively impacts the value of the property or might attribute value to ‘typical neighborhood characteristics’ such as paving and landscaping that aren’t supported in this market. Some real-world examples for you: ● An incompetent appraiser has appraised a subject in Meadowdale Hills (just across from Hermit Park on Highway 36) as inferior to a comparable sale on the Avenues by the hospital because Meadowdale does not have paved roads or landscaping. ● An incompetent appraiser has appraised a subject along the Big Thompson Canyon in Highway 34 on a small lot as equal in land value to a home in the downtown corridor of Estes Park. ● Being unfamiliar with the concept of condominiums as a form of ownership (versus style of home) out-of-area appraisers have used single family homes on land as comparables for detached stand-alone condo Rather than examine the barriers to entry, some in the industry have been allowing unlicensed, untrained “inspectors” to visit the subject property and then give their information to the appraiser who then completes the report. Alternately lenders are hiring “inspectors” and then hiring an appraiser to complete a report based on the data provided by the inspector. Both of these methods undermine the quality of the finished appraisal product. And in nuanced markets such as the Estes Valley the results for your mortgage loan can be devastating. Estes Valley Board of REALTORS
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970-586-2345 ANGE EALTY, LTD. 300 E. Elkhorn Avenue, Estes Park The Oldest Real Estate Company In Estes Park BOB AND TONY'S PIZZA 124 W. Elkhorn
The famous Bob & Tony’s Pizza is for sale and is nestled in down town Estes Park on Elkhorn Ave. This well-established business can be bought for $700,000 separately from the building (ask for lease price of building if only buying business). A classic family entertainment center, with more than just pizza, was established in 1957. Bring the family and enjoy the arcade games. Eat in or take out. “Take & Bake” pizzas also offered.
$1,700,000
1166 PINE TREE DR Your 1.5 acre mountain log home awaits. Remodeled in 2013 with fixtures, appliances, granite countertops. Custom woodwork throughout and all new windows in 2019. Reliable, refreshing water well and luxuriously spacious Master Bedroom/bathroom on main level. Low maintenance, Energy efficient, well engineered construction goes above and beyond. Warm yourself by the wood stove as you enjoy your mountain paradise. Open floor plan. Terrific mountainside views from the redwood deck, hot tub included!
$585,000
1000 WOODLAND CT Beautiful WOODED CORNER LOT with views of Longs Peak from this updated 3 Bed 2 Bath home. Cathedral ceiling in LR, Dining and Kitchen with granite countertops and Stainless Steel Appliances. This is truly a ONE-LEVEL-LIVING with no steps leading in from the outside. Lots of stand-up storage under the home via an outside door.
$549,000
Ann Racine
Broker/Owner, GRI, CRS
(970) 215-3883
www.RangeRealty.com
How To Care For Your Garden Organically Estes Valley Community Garden (EVCG) and Estes Valley Recreation and Park District (EVRPD) Senior and Adult Activities invite you to hear Alison O’Connor, CSU Extension in Larimer County, talk about how to deal with insects, plant diseases and other gardening challenges while also protecting the environment. This free program will be at the EVRPD Community Center on Com-
munity Drive, Tuesday, May 14 at 1:002:00 p.m., and repeated at 7:00 – 8:00 p.m. Registration is required, either online at evrpd.com, or by phone at 586-8191. EVCG Board members will be on hand to answer questions about the Garden. Questions? Contact the Garden at evcg@evcg.org, see our website, evcg.org, or contact EVRPD Community Center at evrpd.com or 586-8191.
Estes Village Properties, Ltd.
320 East Elkhorn Ave. Estes Park
Jim Idler
Mike Tracy
Broker
Broker
(970) 480-1121
(303) 817-5709
Toll Free 1-888-319-2345
970-590-9941
MYESTESPARKREALESTATE.COM
WWW.
2165 Governors Ln Luxurious, comfortable Tudor L home with marble entry, crown h molding, cherry cabinets, gourmet m kkitchen, wet bar, other fine finishes. SSweeping, unobstructed views of Long’s Peak and wildlife viewing are L yyours to enjoy from the sunny nook or any of several picture windows. $1,200,000 Text 877599 to 970-237-4137