The Mortgage and Real Estate industry is changing very rapidly to the “new normal” we are living in due to COVID-19.
Assessing the value of property is a important part of financing. With the implementation of social distancing, here is how the industry is responding:
- Appraisers can to rely on a virtual inspection completed by the customer. This will involve a third party, commercially available chat service such as WhatsApp, Skype or FaceTime – either a recording of the virtual tour, screen shots or photos taken by the homeowner will be collected and used in the appraisal report and saved in the appraisers working file.
- The appraiser may complete an onsite exterior inspection if conditions permit and the customer consents. In the event of no personal onsite exterior inspection, the appraiser will rely on other data sources including an exterior inspection completed by the customer.
- The report will include appropriate extraordinary assumptions and limiting conditions as set out by the respective appraisal association. The appraiser will also include the name of the contact that provided the associated inspection information and the date and time of the viewing. The appraiser will use commercially available third-party information to supplement the lack of interior (and possibly) exterior inspection. These sources will be identified within the report.
- The report will be a single point in value and adjustments will be made.
- The product is completed on the full appraisal form.
- Appraiser insurance coverage remains consistent for full appraisals as outlined by the respective association.
- This product is now approved by all the appraisal associations for their members.
- CAR (Collateral Assessment Rule) document will be produced with this full appraisal however in a slightly modified format.
Let me know if you have any questions or concerns.
Talk soon,
Chad Moore