Indianapolis Appraisal Management

Indianapolis Appraisal Management

When it comes to the sale and purchase of homes – whether you are on the financing end of things or are in the market to purchase – you need the confidence that comes from knowing your appraisal is thorough, compliant, and on point. Major purchases like homes must be vetted before financing can be approved, and in order to move forward, safe in the knowledge that you’ve done the necessary homework, it’s imperative that an experienced Indianapolis appraisal management company be closely involved.

Appraisal Management Companies: The Highlights

Appraisal management companies (AMCs) play a critical role in the housing market, and all of the following key points apply the work they perform:

• AMCs are real estate appraisal companies that are independent of the lender and potential purchaser of the home in question. AMCs are hired to perform independent evaluations of homes before the purchase process begins in earnest.
• AMCs provide licensed, well-qualified appraisers to make the valuations necessary to provide potential lenders with all the pertinent appraisal reports.
• The lenders and the purchasers themselves cannot select their own appraisers due to any taint of any conflict of interest that could arise. 
• There are important federal guidelines in place that seriously restrict any undue influence lenders may exert over appraisals.

Because homeowners, loan officers, and mortgage brokers alike have so much financial interest invested in the potential home sale at hand, none of these parties may play a role in the selection of an appraiser. The risk is that any one of these entities could wield their influence to assign a higher value (than is supported by the market) to the property in question – in an effort to push the deal through artificially. The AMC’s job is to assign an appraiser with appropriate knowledge of the locale in question to ensure that the property is fairly appraised – without bias for either purchaser or investor.  

The Uniform Standards of Professional Appraisal Practice

The valuations performed by appraisers sent out by AMCs must meet the Uniform Standards of Professional Appraisal Practice (USPAP) guidelines. The guiding purpose behind AMCs is to keep a varied pool of licensed, qualified appraisers who then meet the important valuation needs of lending companies. Once an appraiser is deployed to make the necessary appraisal, he or she is neither put in touch with the financial lender nor provided with any additional background information regarding the property. All of these checks and balances are put in place to help keep the transaction fair and aboveboard throughout. 

Working with a Well-Established Indianapolis Appraisal Management Company Is Critical

If you’re in the real estate market – as either a lender or a buyer – you will be relying upon an AMC to ensure that the purchase you’re about to involve yourself in is solid to begin with. At Allstate Appraisal in Indianapolis, we’ve been in the appraisal business since 1959 and our appraisal management services focus on credible, compliant, and timely results. For more information, please don’t hesitate to contact us today.