Value check

<<>> Value check is when an appraiser looks up sales in an MLS database to help determine the value of your home. Appraiser will usually not provide free value checks for home owners. Sometimes appraisers will provide free value checks for those in the industry, like loan officers, in an attempt to get more work from the loan officer.

New HVCC regulations have prevented much of this, because now it is not allowed to complete value checks to see if your deal will work. The best way to find your home value is to complete a desktop appraisal. This is an appraisal that you order directly from the appraiser. Do not give them your opinion or what you need to make your loan work. Just let the appraiser complete a desktop appraisal. The appraiser does not have to go to your home to complete this. All they do is look for similar sales to your home and write a report from their desktop (hence the name desktop appraisal). From this information you have some of the most similar comparable sales in your market area. Once you have this information, you’ll be able to shop for a loan. Sometimes value check is called home value check.

Home value check

Real estate appraisers used to provide a home value check for loan offers and banks in an attempt to get additional work. The system worked like this. The home owner would call the loan officer. The loan officer would check credit and find out what value the home would need to be so that the home owner could borrow the money or take out the loan.

Once the loan officer found out what the borrower needed and checked their credit, etc, now they call a real estate appraiser of r real estate value check. During this check, the realtor will get the address of the home and look at the square footage, design and appeal, lot size, age of the home, etc. Once the appraiser understands the most important data to determine value, they will look of sales in the MLS (Multiple Listing Service). They will locate several sales that are the most similar to the subject. Now the appraiser has a value range. They will relay this information to the loan officer. If the loan officer can make the deal work based on the value of what the appraiser thinks the home will appraise at, they will proceed with the home loan.

HVCC (Home value code of conduct) are new regulations that will not allow comparable sales checks, because loan officers would fish for the appraiser that valued the home for the highest value. Many appraisers would lie in order to get more work and home values would be inflated. Honest appraisers would lose business and many times, the most honest appraisers would go out of business, because the loan offer would only encourage and hire the appraisers that would make their deals work.

If you are a home owner, the best thing that you can do now is to hire the appraiser directly and tell them you’d like a desktop appraisal. This is an appraisal that is written by the appraiser. The appraiser writes the appraisal from his/her desktop. This will allow you to find the value of your home and allow you to shop for a home loan. Desktop appraisals cost less than $200 and will give you control over the loan process. A full lender appraisal will cost your $400 or more. A desktop appraisal will save you money in the short run and sometimes in the long run, since you can shop for more than one bank without having them complete multiple appraisals. Once you find a bank that can make your loan work under the assumption that your home will be valued to close to what the desktop appraisal shows, the loan officer will have to order a full lender appraisal (these are banking regulations and can not be avoided). This appraisal may be different from the desktop appraisal, but it should be within range if the appraiser used both appraisers used the best comparable sales.