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Is value check considered equal to an appraisal?

Posted on: 07th Jun, 2010 04:00 am
I would like to ask whether or not a "value check" is considered as an appraisal. The reason I’ve asking this is because one of the lenders I was dealing with said that he is not interested in value checks as it is not considered as an appraisal. As far as I know in value checks, the appraiser gives an opinion value – specific number of a range of values. Can somebody help?

Thanks in advance…
Any opinion of value from an appraiser is an appraisal. It doesn't even have to be an exact number. It can be a range in value or even an opinion of below or above a certain mark.

A common misconception from many brokers and loan officers I have worked with over the years was that they believed it was not an appraisal until it was on a report form. They would say things like "I don't need an appraisal, I just want to know what it's worth". The problem is that an appraisal is the opinion of value. The form is just one way an appraisal can be reported. It could also be reported verbally or even hand written on a McDonalds napkin.
Posted on: 07th Jun, 2010 06:43 am
Hi Guest,

I agree with Benjamin in this regard. Value checks should be considered as an appraisal if it has been done by a certified appraiser. However, there are certain lenders who may not consider this as a part of the appraisal. Thus, I guess it varies from one lender to another whether or not they would consider value check as an appraisal.

Thanks
Posted on: 08th Jun, 2010 10:21 pm
I understand what James is trying to say but it's a matter of proper terms. There is no argument as to whether it is considered an appraisal but most lenders will not accept them as the basis for risk assessment for a loan. From my experience, most "comp checks" are reported verbally and could be considered hearsay unless recorded. I have also seen some that are reported on a short 1 page form, but due to the limited nature of the analysis, may still not be acceptable to a lender.
Posted on: 09th Jun, 2010 04:12 pm
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