The housing market across the United States is off to a strong start in 2018. As the snow starts to melt in the northern parts of the country, listing prices have begun their seasonal climb and have already reclaimed historic highs according to the February 2018 report from Realtor.com.
Just three months into 2018, the housing market is already experiencing an inventory shortage for entry-level and mid-tier homes which means the buying season has started early and houses don’t sit on the market long. For young families looking to buy their first entry-level home, the last thing they want is to lose their dream home due to a delayed appraisal.
For the past few years, the lending industry has been struggling with appraisal delays due to a growing shortage of qualified appraisers in some market areas, such as Colorado, Washington, and Oregon. To expedite the appraisal process, innovative appraisal management companies, like Nationwide Appraisal Network (NAN), developed hybrid products as an alternative to traditional appraisals.
NAN’s Hybrid Valuation Product allows the inspection to be completed by a licensed home inspector who will perform an exterior and/or interior inspection of a residential property. For example, the Home Inspector will inspect the property according to the lender’s specifications, take photos and provide all inspection notes to NAN. NAN then will assign an appraiser to review inspection notes and photos and create a final value reconciliation. Joni Pilgrim, NAN’s Chief Business Development Officer, says “this has been a very popular product for our clients who have a heavy focus on home equity line of credit (HELOC). Because the value is determined by an appraiser, there is more confidence in this product than a standard automated valuation model (AVM).”
By utilizing both home inspectors and appraisers, the Hybrid Appraisal method speeds up the appraisal process, which ultimately results in a faster lending process. At the moment, Hybrid Appraisals are primarily used for mortgage servicing and default scenarios instead of purchases and refinances. Additionally, private investors are also turning to the hybrid method.
As the housing market continues to strengthen into the buying season, NAN predicts that the demand for Hybrid Appraisals will continue to grow. NAN is at the forefront of using technology to expand its new valuation products and mortgage servicing. For more information on our Hybrid Valuation Product, please contact Joni Pilgrim, Chief Business Development Officer, at 813-749-8849 or by email at firstname.lastname@example.org.