Avoiding Home Appraisal Fraud
Jul.18, 2010 in
Appraisal
Fraud is everywhere and in the real estate business it abounds. Even home appraisers have been known to dip their hands into the fraud bucket. The government is seeking out fraud companies in their own way, but they also encourage the public to take their own measures against these crooks. If you are looking to get your home appraised, the following tips can help you prevent fraud.
- Make sure the appraiser has a valid license. Independent practitioners may lure you with their lower charges but make sure that they are registered with the state and have no violations in the past.
- Be cautious of mortgage banks. Mortgage banks don’t always have a better system of determining your house’s worth just because they’ve established a name in the industry.
- Fannie Mae and Freddie Mac have recently adopted a rule requiring appraisers to specify the components of their findings in more detail. Compare their findings. That should keep you from having doubts whether you’re being duped or not.
- Don’t be afraid to ask lots of questions. When in doubt about your assessment, ask your appraiser to clarify things for you. It would also help to explain to the professional all the remodeling work that you’ve undertaken.
- Follow the guidelines set by the government regarding home appraisals. With the aid of an appraisal management company, you will be provided with a middleman who will send an appraiser to assess your home’s value. That should eliminate the influence of the lender on the appraiser.
There’s little that beats good old common sense. So, if your appraiser seems to be less than trustworthy, follow your instincts.
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July 18th, 2010 at 6:36 am
Under the rules of the Uniform Standards of Professional Practice(USPAP), the appraiser following: the Ethics Rule “must not advocate the cause or interest of any party or issue” and the Confidentiality Clause “..to accept an assignment…..that is contingent on any of the following:……a direction in assignment results that favors the cause of the client…..must protect the confidential nature of the appraiser-client relationship………act in good faith with the legitimate interests of the client in the use of confidential information and in the communication of the assignment resulsts…..”. The client is “the party or parties who engage an appraiser(by employment or contract) in a specific assignment”. Your communication misleads….rs