Frequently Asked Questions

Ohio Residential Appraisal Services

What is HVCC Compliance?
If we have heard it once, we’ve heard it dozens of times; people like you are tired of getting low quality appraisals that do not meet the scrutiny of current day underwriting, but feel like their hands are tied. Appraisal Management Companies are spinning the rolodex with your customers’ largest asset (not to mention with your wallet) and you just want things back to the way they were before the hassle of HVCC. We not only HAVE the solution, we ARE the solution. HVCC laws require a third party to handle the disbursement of appraisal orders to appraisers. AMCs sign up masses of appraisers, so that they can find appraisals in any area for a very low price. They assign your appraisal to the lowest bidding appraiser and pocket the proceeds. Unfortunately, low bidding causes low quality and you end up with an appraisal that underwriting will not approve.
THE BUCKEYE APPRAISAL DIFFERENCE Contracting appraisers without knowing the quality of their work simply doesn’t make sense to us! Therefore, all of the appraisers that we will assign your order to are top-notch appraisers that we have worked with for a minimum of 7 years. That’s right, we know the quality that we will provide and are confident that you will not have to suffer the consequences of using an unqualified appraiser again!

What is the purpose of a real estate appraisal?
An impartial third party appraisal is needed to make sure a buyer is not paying too much for a property and to make sure a lender does not extend too much credit to the buyer. The appraiser gathers details about the property and comparable properties and analyzes those details in order to provide the estimated value of the property.

How much will an appraisal cost?
The cost of the appraisal will vary by county. Please see the County Price List option by clicking on the FEE LIST button. The fees do not change often, but are subject to change at any time without notification.

If a home inspection (walk-through) is a required part of the appraisal, how long will it take?
Generally, the walk-through of your home will take no more than 20 to 30 minutes. Additional time may be spent outside your home, analyzing your property and any structures on your property. Please ask about the length of time needed if you feel there are special circumstances with your home. Note: The term inspection does not constitute a home inspection. When an appraiser views the home, it is for informational gathering purposes.

What happens after the walk-through?

After the walk-through, the appraiser studies homes in your area, which have recently sold and are considered similar to your home. After all this information is gathered, the appraiser can begin the appraisal report in his/her office. This is a lengthy process, taking hours to complete. The report is reviewed to make sure there are no inaccuracies and then is forwarded to the authorized requester.

What is included in the analysis and in the report?

The appraisal process is an orderly and concise method of arriving at an estimate of value. The six major steps of this process include: definition of the problem, preliminary survey and appraisal plan, data collection and analysis, application of the three approaches to value, reconciliation of value indications, and final estimate of defined value. This process assists the appraiser in reaching a sound conclusion. The major phase of this process involves the application of the three approaches to value: the Market Data Approach, the Cost Approach, and the Income Approach. The three approaches are reconciled and the most applicable approach, in the opinion of the appraiser, is selected for the final estimate of value. In most residential appraisals, especially those of single family dwellings, the direct sales comparison or market approach best reflects the actions of buyers and sellers and is the most convincing and defensible approach to value.

How can I get a copy of the appraisal that a lender ordered on my home?
If your appraisal was requested by a lender, then the lender owns that appraisal, regardless of who pays for it. You should submit a written request to the lender, asking for a copy to be sent to you. Do not contact the appraiser for the copy, as it cannot be released without the consent of the requesting lender.

To what standards and rules must appraisers adhere?
Appraisal Standards Board (ASB)
The ASB sets forth the rules for developing an appraisal and reporting its results. Additionally, it promotes the use, understanding, and enforcement of the Uniform Standards of Professional Appraisal Practice (USPAP). FIRREA requires that real estate appraisals, used in conjunction with federally-related transactions, be performed in accordance with USPAP. More than 80,000 state certified and licensed appraisers are currently required to adhere to USPAP. USPAP contains the recognized standards of practice for real estate, personal property, and business appraisal. The authority of USPAP extends beyond FIRREA. Since 1992, the Office of Management and Budget (OMB) has required federal land acquisition and direct lending agencies to use appraisals in conformance with USPAP.

What is PMI or Private Mortgage Insurance?

Private Mortgage Insurance The Homeowners Protection Act of 1998 (Public Law 105-216) was signed into law on July 29, 1998. The Act provides a statutory framework for canceling or automatically terminating private mortgage insurance (PMI). PMI is an insurance policy that protects the lender from losses when a mortgage with a low down payment is in default. In general, most PMI requirements in connection with a residential mortgage transaction entered into after July 29, 1999, will terminate when the mortgage is scheduled to reach 78 percent of the original value of the property. A mortgagor with a good payment history and who meets other requirements of the Act may request the cancellation when the mortgage balance reaches 80 percent of the property’s value. The federal banking agencies, the NCUA, and the Farm Credit Administration are directed to enforce these requirements.

This summary can be found at http://www.fdic.gov/about/strategic/report/98Annual/legis.html

To read more about Public Law 105-216, click here.
Then, click on Text Version.