With the change in the Real Estate market in the Big Bear Valley, I am seeing more and more appraisers come up from down the hill to find work. Unlike many cookie cutter communities down the hill, the Big Bear Valley is comprised of a handful of smaller communities. If an appraiser is going to come to Big Bear to work, he needs to know all of the different areas in the valley. He or she needs to know the differences between Big Bear Lake and Big Bear City. The appraiser should know that a home in Sugarloaf is going to have a different value than a home in Fawnskin.
The reason for my blog today is because I have just had to deal with a down the hill appraiser who should never have been allowed to this appraisal. You may think that is a bit harsh but I don't and here is why!
Red Flag Number One
In my first conversation with this guy, he readily admitted that he didn't have access to the local Multiple Listing Service. Because of this, he would need me to pull the comps for him. Question! If he doesn't have access to the data that is needed to provide the service that he is being paid to provide, then how accurate will the final report be?
Red Flag Number Two
In conversation with this guy, I quickly discovered that he had no idea that a home in Big Bear City has a different value than a home in Sugarloaf, or Big Bear Lake.
I received a call from the buyer's agent yesterday telling me that the home that we have in escrow didn't appraise. Now I knew this couldn't be the case because I had comps that supported the price. I asked for and they sent me over a copy of the report. It was very easy to see why we had a problem. This appraiser used comps for Big Bear City, instead of Big Bear Lake. The homes in Big Bear City aren't going to be worth as much as homes in Big Bear Lake. It was interesting to see that none of the comps that I had pulled for him were included in the report. After a phone conversation with the appraiser, he agreed to take another look at the comps, including the comps that I sent over. It wasn't long before he revised the appraisal and everyone is now happy.
None of this was necessary and would not have happened if the appraiser knew the area. Anytime I put a home in escrow, one of the first things I communicate to the lender is the need to use a local appraiser. In most cases, the banks don't have any idea who is up here in Big Bear, so I fax them a list. The lenders that take my advice and use a local appraiser normally don't have a problem with the appraisals. This is a good example of a lender who didn't listen. This issue may not be a problem in communities where there are so many tract homes. But here in Big Bear, you need to know what you're doing if you're going to do appraisals.
Deals are much harder to get, loans are much harder to get, and the escrows are taking a lot more work in today's market. So, when you buy a home, listen to the advice of your Realtor. There is a good chance that your Real Estate agent has closed a much larger number of homes than you have. Your agent is going to know what is going to make a strong offer and what is going to hurt your offer. Every area is different and how you wrote an offer to buy a tract home in Riverside ten years ago could be a lot different than the structure of an offer written in Big Bear. If you trust your Realtor and listen to him, you're chances of getting a great deal in today's market just increased tenfold.
