Changes to Appraisals

Owner of Inspection WerXs and Appraisal WerX, Lanny Freng joins the show to talk about the property appraisal industry.Lanny talks about the Home Valuation Code of Conduct (HVCC) and the Appraisal Management Company (AMC) and how it changed the industry and the appraiser's relationship with mortgage companies since 2008. While appraisers continue to carry through, Lanny explains that appraisers need to transact with AMCs and can no longer directly connect with banks. He also talks about the guidelines being used in the property comparable and appraisal reports format.They also discuss the technology and modern tools that appraisers use and an appraisal database. Lanny highlights that property appraisals are based on historical data and that the lender is their client and that they are the intended user of the appraisal. He explains how they make time adjustments with their appraisals in accordance with the market. He also talks about Reconsideration of Value (ROV).Reuben asks how home inspections affect the property appraisal and vice versa. Lanny shares about the changes in the appraisal industry. He talks about the differences between Fannie Mae's products such as Hybrid appraisal and Desktop appraisal. Lanny mentions that there are price ceilings, especially with townhouses. He explains how costs do not equate to value.Contact Lanny Freng by calling 612-386-2660 or visiting appraisalwerx.com.