WEBVTT
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All right.
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This is your week's update.
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It's uh for the week of August 23rd already.
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Nikki, how are you doing?
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Good, good.
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So from an interest rate standpoint, uh, we kind of seen the same things that we were seeing last week, which is there is some volatility in the market, but we are sticking into that mid to upper six range from an interest rate standpoint.
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Um, with everything going on and, you know, just kind of remaining steady from where things were.
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It was interesting because I was talking to a client um last week about doing a second mortgage or a home equity line of credit on their home because their first mortgage obviously was at 2.6% or something of that nature.
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So when I sent over interest rates for second mortgages, I was explaining to them like, yeah, they're gonna be a little bit higher than what you would find in the normal market.
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And at the point, um, I was giving them an interest rate of like eight and a half or nine percent on a second mortgage.
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And he was like, his reaction was like, Whoa, I didn't realize interest rates had changed that much.
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And I said, Well, this is for second mortgages, they're always gonna be higher a year ago or year and a half ago, I would have given you a rate of 10 and a half to 11.
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So just kind of just some perspective there from an interest rate standpoint of how, you know, even though we are in the mid to upper sixes, interest rates have really came down.
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Um, the highest mortgage that I wrote as far from an interest rate standpoint in the last year and a half has been at 8.625.
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So keep that in mind as we're kind of running through different scenarios and talking to different clients about where interest rates are and where they are relative to the rest of the market.
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So just a reminder there from from interest from an interest rate standpoint.
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Um, I wanted to talk today about the appraisal changes that are happening.
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So there's a brand new form for appraisals that's going to be required now across all lending.
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It's starting with conventional loans only right now, but there's a lot of major changes into the appraisal form that actually are going to reflect, that are actually going to impact how you guys report things on the on the MLS as far as listing notes, things of that nature, and going to affect comps that are used and values on appraisals.
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So I'm going to get into some of the specifics.
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There's a lot, a lot, a lot of changes.
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So this is no way an exhaustive list of changes that are happening, but it are the it is a kind of a list of the ones that are going to affect you as realtors.
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So first and foremost is the change to the appraisal form.
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Now we used to have tons of different forms, you know, a 1004, a 1073, a 2025, you know, all these different like forms to the appraisal.
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Now it's going to be just one standard appraisal form.
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So the condo, the condo appraisal will look the same to you guys as a single family appraisal, will be the same as, you know, an investment property appraisal and all those little integrations.
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Like we used to have to do separate forms to calculate rental income.
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We used to have to do separate forms to calculate um, you know, gross living area in a condo is different than gross living area and a single family.
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Things of that nature are all going to be on a standard form and it's going to have drop downs that are that's going to make the form fluid.
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So it's no longer going to be like this standardized PDF.
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The appraiser is going to actually be able to go in there and pick the uh property type, and then the appraisal and what it reports will change based on that.
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So it's going to be kind of just this fluid, flexible form now versus where it was just a PDF that they would fill in the blank.
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So it's going to take appraisers a little bit longer to do appraisals in the beginning because they're going to be getting used to these forms.
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So please keep that in mind as you're listing properties and as you're writing purchase agreements that to give us an extra five, six days so that we can get that appraisal form proper done properly.
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So this is a standard that as of August 31st, all conventional appraisals need to have this new form.
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Um the other thing it's going to do is it's going to get rid of the term gross living area.
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So in the reason that we used to use gross living area is always above grade living area.
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And we would, the appraiser would give value to basements, but it wasn't considered part of the gross living area.
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Now we're going to have separate breakdowns for above grade square footage, below grade square footage, non-standard finished square feet, and non-continuous finished square feet.
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So, for example, let's say you have a basement in a property, but part of it is unfinished.
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That square footage is going to be taken into account as below grade unfinished square foot, which means that from that standpoint, that utility room is going to be counted as part of the square footage of the home, but it's not necessarily going to affect the value, but it is going to be noted that it is unfinished.
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So that's just an example of the changes.
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The old, we don't use the term basement anymore.
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We are now using the term below grade.
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So it makes it even more important from your guys' standpoint to make sure you have accurate square footage on the MLS.
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Because when it comes to comps and when it comes to other properties in the area, you know, appraisers rely heavily on what the stated square footage is.
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And, you know, they check it with county records.
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But you guys need to be very diligent now in making sure that your square footage is accurate for the listings because that's only going to help values and only going to help comps.
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Some of you may be familiar with the condition rating on appraisals.
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So we used to use a rating from C1 to C6.
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C1 would be like a new construction property that's never been lived in.
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Whereas like a C3 might be a home that's like 20 to 30 years old but still good in good shape.
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Whereas C6 is like this thing's holding on by duct tape and bubblegum and it's going to fall apart any minute.
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So we those were the prior ratings.
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We are still going to have those ratings.
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However, they are going to be specific for the overall condition of the home, but also they can be broken down room by room.
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So for example, if you have a home that's in pretty good condition and you have a kitchen that's falling apart, they can actually grade the house overall and then grade the kitchen as something like a C2 or a C3 versus the rest of the house might be a C1, depending on what it looks like in the condition.
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This is important again because as realtors take photos of homes that are comps in the area, having more photos and having photos of all the rooms in the home on that listing is going to be important for other people that are purchasing and buying and selling homes in the neighborhood.
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And the value may be affected if you have a room that's run down or you have a room that's torn up or whatever that is from an appraisal standpoint.
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That room can be graded differently than the other, than the house overall.
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So for two houses in a neighborhood that might appear to be C3 overall, your home that you're listing may have an advantage because it's got a remodeled kitchen.
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And then that kitchen can be rated as a C1, which can help the overall value versus a C3 overall, if that makes sense.
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So a lot of times, you know, a lot of the questions that I get when appraise when realtors actually get to see appraisers, appraisals, is what is why is they, why are they giving us a C2 rating versus a C1 versus a C3?
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And why are there all these adjustments?
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Well, it could be that, you know, one of these homes has a remodeled kitchen.
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So they have to rate it as a C1 overall, even though it's not.
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So you just gotta kind of it's gotta be more fluid and more adaptable to what's actually going on in each property versus you know things that that have to be graded overall.
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Um so the other thing, okay, so we do a sales comparison approach.
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So in other words, whenever we if we take a property, the property that we're lending on, and we compare it to the property down the road, they do a certain sales comparison adjustments where it's like, hey, if you were to sell this property, subject property at 400,000 and the one down the road sold at 415, what is the difference between the two?
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Why is this one only selling for 400 and this one is selling for 415?
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And they'll make adjustments based on condition, things of that nature, and sales comparison.
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So different timing in the market, um, things of that nature.
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That is going to be actually become more obvious to you as to why they're comparing the two the way that they are.
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So some appraisals will, for example, this is a very common thing.
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Some appraisers will give a$5,000 adjustment for a fireplace, depending on the location.
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That's a very common one.
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And I'm just throwing$5,000 out there.
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Other appraisers will give that same adjustment, but it'll only be$2,500.
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So it really just depends.
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This will give us more continuity and more um availability of different sales comparison approaches from each property one to the next and have more standardized amounts for those adjustments, which is kind of nice.
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Um, because then you'll be able to say, okay, we can definitely help to pin down how things are selling overall.
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Um, let's see here.
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Another one.
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Oh, if you have a unique um part of the property.
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So for example, you have an ADU or an a dwelling, an additional dwelling unit on the property, or you have um outbuildings, or you have, you know, extra garages, or things of that nature that can affect the value.
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The appraiser is now able to go in there and specifically detail out what those unique property characteristics are for, and um be able to tell you exactly how that has adjusted the value of the property, which will be really nice because prior to this, there was no real way for them to do it unless they manually entered the information and talked about it, et cetera.
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This will have different characteristics and different drop downs and different availability for them to be able to count those unique property features into the value without and not having to find comps with those same unique features.
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So you could compare, hey, we have a single family home with five acres that has zero outbuildings, and we can now make a good comparison to a single family home with five acres with outbuildings and make that comparison approach to make sure that we have accurate values and accurate sale values and um for the property as a whole.
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So it's important again, as a realtor, to make sure you detail out we have this many outbuildings, the existment square foot, we have this, you know, garage, we have this, et cetera.
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So that when the real when the appraiser is looking for comps in the area and they're pulling their own CMA and pulling their information from the MLS, the more information you have in there, the better.
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Um, making sure again that you're taking accurate square footage, but also making sure you have accurate lot sizes and compare your records to the county records.
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And if the county records are wrong, make note of it.
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Um, you know, so that the appraiser can see that, so that your buyers can see it, so that your, you know, sellers can see it, and make any adjustments with the county for those, but nevertheless, make sure that you are having as accurate information as possible.
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So any repairs and deficiencies are now going to be part of the appraisal report.
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They are not going to be on a general addendum.
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There's going to be a specific part in the appraisal report that helps us as lenders communicate to you as realtors on problems, deficiencies, things that repair items that need to be fixed.
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A lot of times all we get is a picture and a short description.
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And we're like, here you go, fix it.
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This will allow the this will require the appraisers to not only identify the problem, specif specify the repair and tell us exactly what needs to be done in order to fix it with pictures.
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They aren't going to be limited to two or three pictures like they are now.
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I mean, if they want to put in 55 pictures all in detail of what needs to happen at this house, they can, which is actually going to be really helpful, especially for clients.
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Um, we I had a client who had um a purchase agreement where they were having deck issues.
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Well, this deck was three and four different layers of deck, and the appraiser was only able to put in three pictures or three or four pictures of this deck that needed to be fixed.
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And it's like, does the whole thing need to be fixed?
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Is it just these four specific spots?
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Are you only outlining, you know, the rot that you're seeing, or is the whole thing rotted?
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And we had to go back and forth and back and forth and back and forth with this appraiser six or seven times to get a very specific detail on what needed to be fixed from a deck standpoint.
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That is very important because it could be the difference between keeping the deal together and having the deal go south and having to find a different property.
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And in this case, unfortunately, there was just too much repair that needed to happen.
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But had we have known that earlier, we could have helped either negotiate or helped you guys under have the realtor understand, like, hey, this is a big issue and this is everything that needs to happen.
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So um that'll be a good, I think a good change to the appraisal that's going to help us clarify these things.
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So it's not changing the appraiser's job.
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Let me be clear, it's not changing the appraiser's job, it's not changing their scope of work, it is not changing whether they call out whether a septic system is good or bad or ugly.
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It is only changing how they report things and the greater detail that they can report things in.
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Now, that and the AI side of this is that on Fanny and Freddie right now, they've put in different um AI reading information that's going to take this appraisal and it's going to basically go through it very quickly line by line and identify any issues that the lender needs to call out to the agents or to um from a lending standpoint as well.
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So a lot of changes really fast as a warning just for yourself and your buyers and your sellers, appraisers appraisals are going to be at least temporarily more expensive as they work through the details of the appraiser taking more time to do this, how it's going to run through Fannie Mae, how the lenders are going to absorb it, and the amount of work that's going to have to go back to the appraisal appraiser to make changes or updates or anything from that standpoint.
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So just so you know, we're saying we're seeing appraisers, you know, really tell us they're bidding out appraisals about$60 to$100 higher, depending on the market.
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Um, so just so you guys are aware that appraisals are going to become more expensive at least temporarily until we can get this form down.
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And then as they are able to do these appraisals faster, then the even the appraisals that they do now, we do expect that price to come back down um over time as things are getting faster.
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And you know, the more AI that happens, et cetera, and the less time that the appraiser's spending on each appraisal is going to take effect for that.
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Like I said, make sure you know conventional only right now, it will be integrated into FHA and VA and rural housing here, probably I would say within the next six months.
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So yeah, so knowing yeah, knowing this information and get getting ahead of it.
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Yes.
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I mean, I don't feel appraisals or how they're done have has changed much at all in the last.
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It has not.
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It is the same appraisal form from when I started lending 28 years ago.
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Very little changes, very little adaptability.
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And every adaptability that's needed to happen over time, they've either added a form or done a general addendum that allows you to do all the other things that I was talking about, the unique property characteristics, the repairs, you know, things of that nature, but they haven't given enough room for enough pictures, enough, you know, guidance on the appraiser, and enough of that stuff.
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So now with this change, they're allowing for a lot more flexibility and a lot more information to be on the same form and have it be a more fluid form versus very static PDF form.
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And interestingly enough, just from a purely technology standpoint, if you think about just an appraisal form and the fluidity it has to have and integrating in that into the automated underwriting system, a lot of those things needed to happen.
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A lot of that data needed to be cross-checked and be able to flood through on the automated approval in order for something like this to be rolled out.
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So this is a huge change in the industry and could really affect values, both in a positive and not so positive way, but overall positive in the idea that there's more detail.
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And when we come to you and we say, hey, we're getting a low appraisal, it's low by 15,000.
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You guys are coming back to us saying, But what about this?
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What about this?
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What about this?
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What about this?
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All of that stuff will already be in the appraisal.
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And hopefully we won't have as many challenges when it comes to low values.
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Well, yeah, no, absolutely.
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And so as an agent, I mean, I often, uh you being the lender, you do a great job of explaining all this.
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Is there anything that we can do?
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Let's say I'm in a buyer presentation, um, having them sign exclusive representation, and I always talk about out-of-pocket costs.
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Um, anything that we can um say as agents to our clients?
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Yeah, I would just generally say, you know, the out-of-pocket upfront fund costs are gonna be your inspection, obviously, on your guys' side.
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But keep in mind on the lender side, some lenders will collect for a credit report.
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I don't, um, a lot, that's very few and far between, but they need to know that it could happen.
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And then also an appraisal upfront.
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So the appraisal cost is gonna be somewhere.
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I would say quoted before, I would say five to seven hundred.
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Now I would quote something like 600 to 800.
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Um, you know, depending on the property type and the busyness of the appraiser and the market conditions at that time, um, I would say, yeah, that's another upfront cost because we do ask for borrowers now to pay for their appraisals up front.
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That's why it's important as a reminder, you as an agent, if you are with a buyer, they do have an accepted purchase agreement and you want to wait to get through the inspection period before you order the appraisal, which totally makes sense.
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We are fine with that.
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Just know that if the inspection time takes up too much time and the negotiation is extended and needs to go on, that the cost of the appraisal could go up because we may have to order it on a rush.
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So just an FYI for you as well is to make sure you can get through that inspection time as quickly as possible as well.
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Yep.
00:18:03.519 --> 00:18:10.880
And that's where you said even in this learning period, or as we're rolling this out, maybe an extra five to six days or even just throw on a week.
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Yeah, before five days, you know, give me, yeah, honor, use your honor before language at least for the next six months, because I just I don't know, we don't know how these appraisers are going to how much time they're gonna want to take.
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And those are some things that we can kind of adjust up front.
00:18:26.640 --> 00:18:31.279
So if like let's say we have a closing in 30 days, I'm sure it'll be more than sufficient time.
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But since we don't know, let's say we have an appraisal in 35 days, you have a five-day inspection period, or 30 days, you have a five-day inspection period, then you order your appraisal with 25 days left.
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If the appraiser comes back and says, no, I needed two full weeks to do this appraiser, or I want at least two full weeks and I'll get it to you when I can.
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That's going to cut into our time.
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Now we can definitely do all of the lending, all of the clearing of conditions, all the approval items while we're waiting for that appraisal.
00:18:56.560 --> 00:19:04.960
But keep in mind that we need to have an appraisal in at least 48 hours before closing day so that it can go through underwriting.
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Any changes and updates can be made.
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We can get any updates of a closing disclosure or anything out to the borrower and still have time to get closing documents out.
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So a lot of that can be cut close.
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I say 48 hours at the, you know, at the bare minimum, but usually we like to have three days.
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Uh just as another reminder, a borrower does have three days to review that appraisal before closing if they want to.
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They can waive that right.
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Um, if, and that's what we have a lot of clients do is just waive that three-day right.
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But if it comes down to it and they want to have their three days, we have to give it to them.
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So if we can, you know, plan out these closings and plan out the appraisal timing.
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And then if I do get an appra, you know, appraiser that says, hey, I need two full weeks to do that, then I can call you and say, Hey, do we need, do you want me to add a rush to this?
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You know, do and talk to the borrower about the added cost.
00:19:56.080 --> 00:19:57.200
You know, there's a rush.
00:19:57.360 --> 00:19:59.440
If we want to close on time, this is what it's gonna be.
00:19:59.519 --> 00:20:01.759
I'm a little nervous, you know, those types of things.
00:20:02.080 --> 00:20:06.560
So keeping open communication is going to be absolutely essential.
00:20:06.800 --> 00:20:20.160
Again, I would say with the biggest changes, making sure you have your um square footage correct um on and and compare that square footage to what the county has and draw out any, you know, abnormalities or any discrepancies in that.
00:20:20.400 --> 00:20:37.360
Um, also making sure that you have photos of unique property characteristics or um new kitchens or you know, things that could affect the value of homes in general, and that you would want any potential buyers to see that would value the home higher than it already is.
00:20:37.440 --> 00:20:47.519
Not that you guys aren't already doing that, but just from a purely appraisal standpoint, those appraisers really have to rely a lot on MLS pictures of other properties from a comparison standpoint.
00:20:47.759 --> 00:20:59.920
So the more pictures, the better job you can do of presenting that property as what it actually is, is going to be better overall as time goes on and in general for the appraisals for other properties in the area.
00:21:00.160 --> 00:21:01.360
Yep, absolutely.
00:21:01.519 --> 00:21:10.560
And I think again, listening to you and knowing this up front, you have a leg up because a lot of agents aren't going to know this, they're not going to understand this.
00:21:10.640 --> 00:21:21.840
So, as you're, you know, either whether you're on the listing or the buy side, uh, know this information because it will come in handy if again inspection gets extended.
00:21:22.000 --> 00:21:23.200
Well, we'll have to look at this.
00:21:23.360 --> 00:21:24.480
Or are you aware of this?
00:21:24.640 --> 00:21:37.519
So, this is where we can really show up and help educate the um market and educate the industry because this uh is not being taught at many brokerages at very various levels.
00:21:37.759 --> 00:21:44.880
So, really uh again, every week is outstanding, but this is this is quite right uh yeah, informative.
00:21:44.960 --> 00:21:46.480
So a lot of changes.
00:21:46.720 --> 00:22:00.720
And just as a reminder, on any inspection items that come across your desk from a negotiation standpoint, from a property condition standpoint, give your lender a call, give your loan officer a call and say, hey, we're working on this part of the inspection.
00:22:00.880 --> 00:22:02.880
Is this gonna show up on the appraisal?
00:22:03.120 --> 00:22:05.360
Is this going to affect the appraisal?
00:22:05.519 --> 00:22:09.039
How do we need to word this addendum so that the lending is gonna be fine on this?
00:22:09.200 --> 00:22:10.720
What does this addendum need to say?
00:22:10.880 --> 00:22:12.560
How do we need to propose this?
00:22:12.800 --> 00:22:21.200
Please lean, lean, lean on us as lenders because what you say and how you say it on the addendum can blow up a deal.
00:22:21.440 --> 00:22:23.840
So I've seen it happen a million times.
00:22:24.000 --> 00:22:29.039
You know, if things aren't done by closing, you know, you could have a couple outlets that you mentioned.
00:22:29.120 --> 00:22:32.480
Well, I got to send an appraiser out there to make sure these outlets are taken care of.
00:22:32.640 --> 00:22:33.519
That seems ridiculous.
00:22:33.600 --> 00:22:40.880
That's$150 extra cost to the borrower if I know about these outlets that need to be taken care of and it's on an addendum in that fashion.
00:22:41.039 --> 00:22:47.440
So a lot of times there's a lot of guidance that can happen from an addendum standpoint, from a lending standpoint, that can make it more lender-friendly.
00:22:47.600 --> 00:22:54.960
And that is not breaking any rules, it's not violating any laws, we're not doing anything that's, you know, obviously shady or anything, but it can be done.
00:22:55.039 --> 00:23:04.640
The language can be done in such a way where it tells the right story to the underwriter and the right story to the appraiser that can really head off a lot of issues in the beginning.
00:23:05.120 --> 00:23:06.080
Absolutely.
00:23:06.320 --> 00:23:07.840
Wow, lots to go over.
00:23:08.000 --> 00:23:09.840
I would listen to this twice.
00:23:10.320 --> 00:23:11.039
Yes, please do.
00:23:11.200 --> 00:23:11.360
Yes.
00:23:11.680 --> 00:23:13.759
And as this evolves, I'll get more and more detail.
00:23:13.840 --> 00:23:15.360
I just didn't want to overwhelm you.
00:23:15.519 --> 00:23:20.400
I mean, I'm sure there's a lot of information already, but like there's a lot more detail that's going to go into this appraisal.
00:23:20.480 --> 00:23:25.519
But those are just the highlights as far as real true specific things that you guys can do that can help the appraisal process along.
00:23:25.680 --> 00:23:25.920
Yeah.
00:23:26.160 --> 00:23:34.080
And that's why you should come back every week, because every week she drops priceless information that you will not hear anywhere else.
00:23:34.240 --> 00:23:35.360
At least I don't know.
00:23:36.400 --> 00:23:36.640
Yeah.
00:23:36.880 --> 00:23:46.240
I'm listening to other things and hearing other things, and not many people are showing up the way you do and and and educating us and keeping us in the know and ahead of the curve.
00:23:46.480 --> 00:23:47.759
So, so amazing.
00:23:47.920 --> 00:23:51.840
And I know the next six months, I'm sure we'll hear plenty, plenty more.
00:23:51.920 --> 00:23:53.279
So definitely stay tuned.
00:23:53.519 --> 00:23:54.720
Stay tuned in.
00:23:55.360 --> 00:23:56.000
Absolutely.
00:23:56.320 --> 00:23:56.640
Awesome.
00:23:56.800 --> 00:23:58.160
Well, thank you, Nikki, as always.
00:23:58.400 --> 00:23:59.120
Appreciate you.
00:23:59.200 --> 00:24:04.720
And how do they get a hold of you if they have questions or want to know more specifics about this appraisal changes?
00:24:05.120 --> 00:24:05.360
Sure.
00:24:05.440 --> 00:24:11.200
You can find me on social media, TikTok, Facebook, Instagram at mortgages from M N to A Z.
00:24:11.360 --> 00:24:20.320
You can also call, text me at 952-484-15E1584, or you can email me at Nikki at Kevnik Group.com.
00:24:20.800 --> 00:24:21.200
Perfect.
00:24:21.360 --> 00:24:21.759
All right.
00:24:22.080 --> 00:24:22.800
Till next week.
00:24:22.960 --> 00:24:24.480
Appreciate you and everyone.
00:24:24.560 --> 00:24:27.039
Um reach out to Nikki if you have any questions at all.
00:24:27.200 --> 00:24:29.360
She's an amazing resource, and we're lucky to have her.
00:24:29.920 --> 00:24:30.240
Awesome.
00:24:30.320 --> 00:24:30.880
Thanks, guys.
00:24:31.039 --> 00:24:31.200
Thanks.
00:00:35.840 --> 00:00:36.399
All right.
00:00:36.640 --> 00:00:38.640
This is your week's update.
00:00:38.800 --> 00:00:41.600
It's uh for the week of August 23rd already.
00:00:41.760 --> 00:00:43.120
Nikki, how are you doing?
00:00:43.600 --> 00:00:44.400
Good, good.
00:00:44.719 --> 00:00:54.640
So from an interest rate standpoint, uh, we kind of seen the same things that we were seeing last week, which is there is some volatility in the market, but we are sticking into that mid to upper six range from an interest rate standpoint.
00:00:54.719 --> 00:00:59.359
Um, with everything going on and, you know, just kind of remaining steady from where things were.
00:00:59.520 --> 00:01:10.640
It was interesting because I was talking to a client um last week about doing a second mortgage or a home equity line of credit on their home because their first mortgage obviously was at 2.6% or something of that nature.
00:01:10.800 --> 00:01:17.439
So when I sent over interest rates for second mortgages, I was explaining to them like, yeah, they're gonna be a little bit higher than what you would find in the normal market.
00:01:17.599 --> 00:01:23.120
And at the point, um, I was giving them an interest rate of like eight and a half or nine percent on a second mortgage.
00:01:23.280 --> 00:01:28.480
And he was like, his reaction was like, Whoa, I didn't realize interest rates had changed that much.
00:01:28.640 --> 00:01:36.319
And I said, Well, this is for second mortgages, they're always gonna be higher a year ago or year and a half ago, I would have given you a rate of 10 and a half to 11.
00:01:36.480 --> 00:01:44.159
So just kind of just some perspective there from an interest rate standpoint of how, you know, even though we are in the mid to upper sixes, interest rates have really came down.
00:01:44.239 --> 00:01:51.359
Um, the highest mortgage that I wrote as far from an interest rate standpoint in the last year and a half has been at 8.625.
00:01:51.439 --> 00:01:59.519
So keep that in mind as we're kind of running through different scenarios and talking to different clients about where interest rates are and where they are relative to the rest of the market.
00:01:59.760 --> 00:02:04.799
So just a reminder there from from interest from an interest rate standpoint.
00:02:04.960 --> 00:02:09.280
Um, I wanted to talk today about the appraisal changes that are happening.
00:02:09.360 --> 00:02:15.280
So there's a brand new form for appraisals that's going to be required now across all lending.
00:02:15.519 --> 00:02:34.960
It's starting with conventional loans only right now, but there's a lot of major changes into the appraisal form that actually are going to reflect, that are actually going to impact how you guys report things on the on the MLS as far as listing notes, things of that nature, and going to affect comps that are used and values on appraisals.
00:02:35.040 --> 00:02:36.960
So I'm going to get into some of the specifics.
00:02:37.040 --> 00:02:38.639
There's a lot, a lot, a lot of changes.
00:02:38.719 --> 00:02:47.120
So this is no way an exhaustive list of changes that are happening, but it are the it is a kind of a list of the ones that are going to affect you as realtors.
00:02:47.360 --> 00:02:51.439
So first and foremost is the change to the appraisal form.
00:02:51.600 --> 00:02:59.360
Now we used to have tons of different forms, you know, a 1004, a 1073, a 2025, you know, all these different like forms to the appraisal.
00:02:59.519 --> 00:03:02.639
Now it's going to be just one standard appraisal form.
00:03:02.879 --> 00:03:12.800
So the condo, the condo appraisal will look the same to you guys as a single family appraisal, will be the same as, you know, an investment property appraisal and all those little integrations.
00:03:12.879 --> 00:03:16.160
Like we used to have to do separate forms to calculate rental income.
00:03:16.319 --> 00:03:24.240
We used to have to do separate forms to calculate um, you know, gross living area in a condo is different than gross living area and a single family.
00:03:24.399 --> 00:03:31.600
Things of that nature are all going to be on a standard form and it's going to have drop downs that are that's going to make the form fluid.
00:03:31.680 --> 00:03:34.800
So it's no longer going to be like this standardized PDF.
00:03:34.879 --> 00:03:42.639
The appraiser is going to actually be able to go in there and pick the uh property type, and then the appraisal and what it reports will change based on that.
00:03:42.800 --> 00:03:48.560
So it's going to be kind of just this fluid, flexible form now versus where it was just a PDF that they would fill in the blank.
00:03:48.639 --> 00:03:54.399
So it's going to take appraisers a little bit longer to do appraisals in the beginning because they're going to be getting used to these forms.
00:03:54.560 --> 00:04:05.519
So please keep that in mind as you're listing properties and as you're writing purchase agreements that to give us an extra five, six days so that we can get that appraisal form proper done properly.
00:04:05.680 --> 00:04:12.079
So this is a standard that as of August 31st, all conventional appraisals need to have this new form.
00:04:12.160 --> 00:04:16.959
Um the other thing it's going to do is it's going to get rid of the term gross living area.
00:04:17.280 --> 00:04:23.920
So in the reason that we used to use gross living area is always above grade living area.
00:04:24.000 --> 00:04:29.600
And we would, the appraiser would give value to basements, but it wasn't considered part of the gross living area.
00:04:29.759 --> 00:04:41.199
Now we're going to have separate breakdowns for above grade square footage, below grade square footage, non-standard finished square feet, and non-continuous finished square feet.
00:04:41.360 --> 00:04:45.759
So, for example, let's say you have a basement in a property, but part of it is unfinished.
00:04:45.920 --> 00:05:03.439
That square footage is going to be taken into account as below grade unfinished square foot, which means that from that standpoint, that utility room is going to be counted as part of the square footage of the home, but it's not necessarily going to affect the value, but it is going to be noted that it is unfinished.
00:05:03.600 --> 00:05:05.759
So that's just an example of the changes.
00:05:06.480 --> 00:05:09.600
The old, we don't use the term basement anymore.
00:05:09.759 --> 00:05:12.000
We are now using the term below grade.
00:05:13.199 --> 00:05:20.160
So it makes it even more important from your guys' standpoint to make sure you have accurate square footage on the MLS.
00:05:20.319 --> 00:05:27.360
Because when it comes to comps and when it comes to other properties in the area, you know, appraisers rely heavily on what the stated square footage is.
00:05:27.600 --> 00:05:29.600
And, you know, they check it with county records.
00:05:29.680 --> 00:05:39.199
But you guys need to be very diligent now in making sure that your square footage is accurate for the listings because that's only going to help values and only going to help comps.
00:05:40.960 --> 00:05:44.480
Some of you may be familiar with the condition rating on appraisals.
00:05:44.640 --> 00:05:47.120
So we used to use a rating from C1 to C6.
00:05:47.199 --> 00:05:50.640
C1 would be like a new construction property that's never been lived in.
00:05:50.800 --> 00:05:55.439
Whereas like a C3 might be a home that's like 20 to 30 years old but still good in good shape.
00:05:55.600 --> 00:06:01.360
Whereas C6 is like this thing's holding on by duct tape and bubblegum and it's going to fall apart any minute.
00:06:01.600 --> 00:06:04.080
So we those were the prior ratings.
00:06:04.160 --> 00:06:05.680
We are still going to have those ratings.
00:06:05.840 --> 00:06:13.600
However, they are going to be specific for the overall condition of the home, but also they can be broken down room by room.
00:06:13.759 --> 00:06:30.319
So for example, if you have a home that's in pretty good condition and you have a kitchen that's falling apart, they can actually grade the house overall and then grade the kitchen as something like a C2 or a C3 versus the rest of the house might be a C1, depending on what it looks like in the condition.
00:06:30.480 --> 00:06:46.480
This is important again because as realtors take photos of homes that are comps in the area, having more photos and having photos of all the rooms in the home on that listing is going to be important for other people that are purchasing and buying and selling homes in the neighborhood.
00:06:47.120 --> 00:06:54.319
And the value may be affected if you have a room that's run down or you have a room that's torn up or whatever that is from an appraisal standpoint.
00:06:54.480 --> 00:06:58.879
That room can be graded differently than the other, than the house overall.
00:06:59.199 --> 00:07:07.520
So for two houses in a neighborhood that might appear to be C3 overall, your home that you're listing may have an advantage because it's got a remodeled kitchen.
00:07:07.600 --> 00:07:14.800
And then that kitchen can be rated as a C1, which can help the overall value versus a C3 overall, if that makes sense.
00:07:14.960 --> 00:07:27.600
So a lot of times, you know, a lot of the questions that I get when appraise when realtors actually get to see appraisers, appraisals, is what is why is they, why are they giving us a C2 rating versus a C1 versus a C3?
00:07:27.759 --> 00:07:28.960
And why are there all these adjustments?
00:07:29.120 --> 00:07:31.920
Well, it could be that, you know, one of these homes has a remodeled kitchen.
00:07:32.000 --> 00:07:35.120
So they have to rate it as a C1 overall, even though it's not.
00:07:35.360 --> 00:07:44.800
So you just gotta kind of it's gotta be more fluid and more adaptable to what's actually going on in each property versus you know things that that have to be graded overall.
00:07:45.280 --> 00:07:50.480
Um so the other thing, okay, so we do a sales comparison approach.
00:07:50.560 --> 00:08:10.480
So in other words, whenever we if we take a property, the property that we're lending on, and we compare it to the property down the road, they do a certain sales comparison adjustments where it's like, hey, if you were to sell this property, subject property at 400,000 and the one down the road sold at 415, what is the difference between the two?
00:08:10.640 --> 00:08:13.439
Why is this one only selling for 400 and this one is selling for 415?
00:08:13.600 --> 00:08:17.600
And they'll make adjustments based on condition, things of that nature, and sales comparison.
00:08:17.759 --> 00:08:20.640
So different timing in the market, um, things of that nature.
00:08:20.720 --> 00:08:26.560
That is going to be actually become more obvious to you as to why they're comparing the two the way that they are.
00:08:26.720 --> 00:08:29.840
So some appraisals will, for example, this is a very common thing.
00:08:30.000 --> 00:08:35.519
Some appraisers will give a$5,000 adjustment for a fireplace, depending on the location.
00:08:35.679 --> 00:08:36.639
That's a very common one.
00:08:36.720 --> 00:08:38.879
And I'm just throwing$5,000 out there.
00:08:39.039 --> 00:08:43.519
Other appraisers will give that same adjustment, but it'll only be$2,500.
00:08:43.600 --> 00:08:44.799
So it really just depends.
00:08:44.879 --> 00:08:58.399
This will give us more continuity and more um availability of different sales comparison approaches from each property one to the next and have more standardized amounts for those adjustments, which is kind of nice.
00:08:58.480 --> 00:09:04.720
Um, because then you'll be able to say, okay, we can definitely help to pin down how things are selling overall.
00:09:04.879 --> 00:09:06.079
Um, let's see here.
00:09:07.120 --> 00:09:08.240
Another one.
00:09:08.479 --> 00:09:13.519
Oh, if you have a unique um part of the property.
00:09:13.679 --> 00:09:28.000
So for example, you have an ADU or an a dwelling, an additional dwelling unit on the property, or you have um outbuildings, or you have, you know, extra garages, or things of that nature that can affect the value.
00:09:28.159 --> 00:09:46.639
The appraiser is now able to go in there and specifically detail out what those unique property characteristics are for, and um be able to tell you exactly how that has adjusted the value of the property, which will be really nice because prior to this, there was no real way for them to do it unless they manually entered the information and talked about it, et cetera.
00:09:46.719 --> 00:09:59.759
This will have different characteristics and different drop downs and different availability for them to be able to count those unique property features into the value without and not having to find comps with those same unique features.
00:10:00.000 --> 00:10:18.799
So you could compare, hey, we have a single family home with five acres that has zero outbuildings, and we can now make a good comparison to a single family home with five acres with outbuildings and make that comparison approach to make sure that we have accurate values and accurate sale values and um for the property as a whole.
00:10:18.959 --> 00:10:27.759
So it's important again, as a realtor, to make sure you detail out we have this many outbuildings, the existment square foot, we have this, you know, garage, we have this, et cetera.
00:10:27.839 --> 00:10:37.519
So that when the real when the appraiser is looking for comps in the area and they're pulling their own CMA and pulling their information from the MLS, the more information you have in there, the better.
00:10:37.759 --> 00:10:46.000
Um, making sure again that you're taking accurate square footage, but also making sure you have accurate lot sizes and compare your records to the county records.
00:10:46.079 --> 00:10:48.879
And if the county records are wrong, make note of it.
00:10:48.959 --> 00:11:02.319
Um, you know, so that the appraiser can see that, so that your buyers can see it, so that your, you know, sellers can see it, and make any adjustments with the county for those, but nevertheless, make sure that you are having as accurate information as possible.
00:11:02.719 --> 00:11:08.639
So any repairs and deficiencies are now going to be part of the appraisal report.
00:11:08.719 --> 00:11:10.559
They are not going to be on a general addendum.
00:11:10.719 --> 00:11:22.959
There's going to be a specific part in the appraisal report that helps us as lenders communicate to you as realtors on problems, deficiencies, things that repair items that need to be fixed.
00:11:23.120 --> 00:11:25.919
A lot of times all we get is a picture and a short description.
00:11:26.000 --> 00:11:27.919
And we're like, here you go, fix it.
00:11:28.959 --> 00:11:40.959
This will allow the this will require the appraisers to not only identify the problem, specif specify the repair and tell us exactly what needs to be done in order to fix it with pictures.
00:11:41.120 --> 00:11:43.839
They aren't going to be limited to two or three pictures like they are now.
00:11:43.919 --> 00:11:52.639
I mean, if they want to put in 55 pictures all in detail of what needs to happen at this house, they can, which is actually going to be really helpful, especially for clients.
00:11:52.799 --> 00:11:58.319
Um, we I had a client who had um a purchase agreement where they were having deck issues.
00:11:58.559 --> 00:12:08.079
Well, this deck was three and four different layers of deck, and the appraiser was only able to put in three pictures or three or four pictures of this deck that needed to be fixed.
00:12:08.159 --> 00:12:10.479
And it's like, does the whole thing need to be fixed?
00:12:10.559 --> 00:12:12.559
Is it just these four specific spots?
00:12:12.719 --> 00:12:16.959
Are you only outlining, you know, the rot that you're seeing, or is the whole thing rotted?
00:12:17.039 --> 00:12:26.719
And we had to go back and forth and back and forth and back and forth with this appraiser six or seven times to get a very specific detail on what needed to be fixed from a deck standpoint.
00:12:26.959 --> 00:12:36.559
That is very important because it could be the difference between keeping the deal together and having the deal go south and having to find a different property.
00:12:36.639 --> 00:12:40.240
And in this case, unfortunately, there was just too much repair that needed to happen.
00:12:40.319 --> 00:12:51.439
But had we have known that earlier, we could have helped either negotiate or helped you guys under have the realtor understand, like, hey, this is a big issue and this is everything that needs to happen.
00:12:51.599 --> 00:12:58.559
So um that'll be a good, I think a good change to the appraisal that's going to help us clarify these things.
00:12:58.799 --> 00:13:01.439
So it's not changing the appraiser's job.
00:13:01.839 --> 00:13:10.719
Let me be clear, it's not changing the appraiser's job, it's not changing their scope of work, it is not changing whether they call out whether a septic system is good or bad or ugly.
00:13:10.879 --> 00:13:16.639
It is only changing how they report things and the greater detail that they can report things in.
00:13:16.879 --> 00:13:39.360
Now, that and the AI side of this is that on Fanny and Freddie right now, they've put in different um AI reading information that's going to take this appraisal and it's going to basically go through it very quickly line by line and identify any issues that the lender needs to call out to the agents or to um from a lending standpoint as well.
00:13:39.519 --> 00:14:07.279
So a lot of changes really fast as a warning just for yourself and your buyers and your sellers, appraisers appraisals are going to be at least temporarily more expensive as they work through the details of the appraiser taking more time to do this, how it's going to run through Fannie Mae, how the lenders are going to absorb it, and the amount of work that's going to have to go back to the appraisal appraiser to make changes or updates or anything from that standpoint.
00:14:07.439 --> 00:14:18.240
So just so you know, we're saying we're seeing appraisers, you know, really tell us they're bidding out appraisals about$60 to$100 higher, depending on the market.
00:14:18.399 --> 00:14:25.679
Um, so just so you guys are aware that appraisals are going to become more expensive at least temporarily until we can get this form down.
00:14:25.839 --> 00:14:35.439
And then as they are able to do these appraisals faster, then the even the appraisals that they do now, we do expect that price to come back down um over time as things are getting faster.
00:14:35.599 --> 00:14:43.279
And you know, the more AI that happens, et cetera, and the less time that the appraiser's spending on each appraisal is going to take effect for that.
00:14:43.439 --> 00:14:53.199
Like I said, make sure you know conventional only right now, it will be integrated into FHA and VA and rural housing here, probably I would say within the next six months.
00:14:53.759 --> 00:14:58.479
So yeah, so knowing yeah, knowing this information and get getting ahead of it.
00:14:58.639 --> 00:14:58.959
Yes.
00:14:59.199 --> 00:15:04.639
I mean, I don't feel appraisals or how they're done have has changed much at all in the last.
00:15:06.240 --> 00:15:06.799
It has not.
00:15:06.879 --> 00:15:10.399
It is the same appraisal form from when I started lending 28 years ago.
00:15:10.639 --> 00:15:13.519
Very little changes, very little adaptability.
00:15:13.599 --> 00:15:33.120
And every adaptability that's needed to happen over time, they've either added a form or done a general addendum that allows you to do all the other things that I was talking about, the unique property characteristics, the repairs, you know, things of that nature, but they haven't given enough room for enough pictures, enough, you know, guidance on the appraiser, and enough of that stuff.
00:15:33.199 --> 00:15:46.879
So now with this change, they're allowing for a lot more flexibility and a lot more information to be on the same form and have it be a more fluid form versus very static PDF form.
00:15:47.120 --> 00:15:59.039
And interestingly enough, just from a purely technology standpoint, if you think about just an appraisal form and the fluidity it has to have and integrating in that into the automated underwriting system, a lot of those things needed to happen.
00:15:59.120 --> 00:16:07.120
A lot of that data needed to be cross-checked and be able to flood through on the automated approval in order for something like this to be rolled out.
00:16:07.199 --> 00:16:15.599
So this is a huge change in the industry and could really affect values, both in a positive and not so positive way, but overall positive in the idea that there's more detail.
00:16:15.759 --> 00:16:20.000
And when we come to you and we say, hey, we're getting a low appraisal, it's low by 15,000.
00:16:20.159 --> 00:16:22.159
You guys are coming back to us saying, But what about this?
00:16:22.240 --> 00:16:22.639
What about this?
00:16:22.719 --> 00:16:23.199
What about this?
00:16:23.279 --> 00:16:23.759
What about this?
00:16:23.919 --> 00:16:26.159
All of that stuff will already be in the appraisal.
00:16:26.240 --> 00:16:29.759
And hopefully we won't have as many challenges when it comes to low values.
00:16:30.079 --> 00:16:32.000
Well, yeah, no, absolutely.
00:16:32.240 --> 00:16:39.039
And so as an agent, I mean, I often, uh you being the lender, you do a great job of explaining all this.
00:16:39.120 --> 00:16:40.479
Is there anything that we can do?
00:16:40.559 --> 00:16:48.639
Let's say I'm in a buyer presentation, um, having them sign exclusive representation, and I always talk about out-of-pocket costs.
00:16:48.799 --> 00:16:53.679
Um, anything that we can um say as agents to our clients?
00:16:53.919 --> 00:17:00.159
Yeah, I would just generally say, you know, the out-of-pocket upfront fund costs are gonna be your inspection, obviously, on your guys' side.
00:17:00.319 --> 00:17:04.960
But keep in mind on the lender side, some lenders will collect for a credit report.
00:17:05.120 --> 00:17:09.759
I don't, um, a lot, that's very few and far between, but they need to know that it could happen.
00:17:09.920 --> 00:17:12.000
And then also an appraisal upfront.
00:17:12.160 --> 00:17:14.319
So the appraisal cost is gonna be somewhere.
00:17:14.480 --> 00:17:17.440
I would say quoted before, I would say five to seven hundred.
00:17:17.519 --> 00:17:20.400
Now I would quote something like 600 to 800.
00:17:20.559 --> 00:17:33.279
Um, you know, depending on the property type and the busyness of the appraiser and the market conditions at that time, um, I would say, yeah, that's another upfront cost because we do ask for borrowers now to pay for their appraisals up front.
00:17:33.440 --> 00:17:44.880
That's why it's important as a reminder, you as an agent, if you are with a buyer, they do have an accepted purchase agreement and you want to wait to get through the inspection period before you order the appraisal, which totally makes sense.
00:17:45.039 --> 00:17:46.080
We are fine with that.
00:17:46.240 --> 00:17:56.880
Just know that if the inspection time takes up too much time and the negotiation is extended and needs to go on, that the cost of the appraisal could go up because we may have to order it on a rush.
00:17:57.039 --> 00:18:02.880
So just an FYI for you as well is to make sure you can get through that inspection time as quickly as possible as well.
00:18:03.120 --> 00:18:03.360
Yep.
00:18:03.519 --> 00:18:10.880
And that's where you said even in this learning period, or as we're rolling this out, maybe an extra five to six days or even just throw on a week.
00:18:11.039 --> 00:18:24.320
Yeah, before five days, you know, give me, yeah, honor, use your honor before language at least for the next six months, because I just I don't know, we don't know how these appraisers are going to how much time they're gonna want to take.
00:18:24.480 --> 00:18:26.560
And those are some things that we can kind of adjust up front.
00:18:26.640 --> 00:18:31.279
So if like let's say we have a closing in 30 days, I'm sure it'll be more than sufficient time.
00:18:31.360 --> 00:18:40.960
But since we don't know, let's say we have an appraisal in 35 days, you have a five-day inspection period, or 30 days, you have a five-day inspection period, then you order your appraisal with 25 days left.
00:18:41.120 --> 00:18:47.279
If the appraiser comes back and says, no, I needed two full weeks to do this appraiser, or I want at least two full weeks and I'll get it to you when I can.
00:18:47.440 --> 00:18:48.880
That's going to cut into our time.
00:18:48.960 --> 00:18:56.320
Now we can definitely do all of the lending, all of the clearing of conditions, all the approval items while we're waiting for that appraisal.
00:18:56.560 --> 00:19:04.960
But keep in mind that we need to have an appraisal in at least 48 hours before closing day so that it can go through underwriting.
00:19:05.120 --> 00:19:07.039
Any changes and updates can be made.
00:19:07.200 --> 00:19:14.960
We can get any updates of a closing disclosure or anything out to the borrower and still have time to get closing documents out.
00:19:15.120 --> 00:19:17.120
So a lot of that can be cut close.
00:19:17.279 --> 00:19:23.200
I say 48 hours at the, you know, at the bare minimum, but usually we like to have three days.
00:19:23.840 --> 00:19:31.039
Uh just as another reminder, a borrower does have three days to review that appraisal before closing if they want to.
00:19:31.200 --> 00:19:32.720
They can waive that right.
00:19:33.039 --> 00:19:36.880
Um, if, and that's what we have a lot of clients do is just waive that three-day right.
00:19:37.360 --> 00:19:41.680
But if it comes down to it and they want to have their three days, we have to give it to them.
00:19:41.840 --> 00:19:45.600
So if we can, you know, plan out these closings and plan out the appraisal timing.
00:19:45.680 --> 00:19:53.279
And then if I do get an appra, you know, appraiser that says, hey, I need two full weeks to do that, then I can call you and say, Hey, do we need, do you want me to add a rush to this?
00:19:53.440 --> 00:19:56.000
You know, do and talk to the borrower about the added cost.
00:19:56.080 --> 00:19:57.200
You know, there's a rush.
00:19:57.360 --> 00:19:59.440
If we want to close on time, this is what it's gonna be.
00:19:59.519 --> 00:20:01.759
I'm a little nervous, you know, those types of things.
00:20:02.080 --> 00:20:06.560
So keeping open communication is going to be absolutely essential.
00:20:06.800 --> 00:20:20.160
Again, I would say with the biggest changes, making sure you have your um square footage correct um on and and compare that square footage to what the county has and draw out any, you know, abnormalities or any discrepancies in that.
00:20:20.400 --> 00:20:37.360
Um, also making sure that you have photos of unique property characteristics or um new kitchens or you know, things that could affect the value of homes in general, and that you would want any potential buyers to see that would value the home higher than it already is.
00:20:37.440 --> 00:20:47.519
Not that you guys aren't already doing that, but just from a purely appraisal standpoint, those appraisers really have to rely a lot on MLS pictures of other properties from a comparison standpoint.
00:20:47.759 --> 00:20:59.920
So the more pictures, the better job you can do of presenting that property as what it actually is, is going to be better overall as time goes on and in general for the appraisals for other properties in the area.
00:21:00.160 --> 00:21:01.360
Yep, absolutely.
00:21:01.519 --> 00:21:10.560
And I think again, listening to you and knowing this up front, you have a leg up because a lot of agents aren't going to know this, they're not going to understand this.
00:21:10.640 --> 00:21:21.840
So, as you're, you know, either whether you're on the listing or the buy side, uh, know this information because it will come in handy if again inspection gets extended.
00:21:22.000 --> 00:21:23.200
Well, we'll have to look at this.
00:21:23.360 --> 00:21:24.480
Or are you aware of this?
00:21:24.640 --> 00:21:37.519
So, this is where we can really show up and help educate the um market and educate the industry because this uh is not being taught at many brokerages at very various levels.
00:21:37.759 --> 00:21:44.880
So, really uh again, every week is outstanding, but this is this is quite right uh yeah, informative.
00:21:44.960 --> 00:21:46.480
So a lot of changes.
00:21:46.720 --> 00:22:00.720
And just as a reminder, on any inspection items that come across your desk from a negotiation standpoint, from a property condition standpoint, give your lender a call, give your loan officer a call and say, hey, we're working on this part of the inspection.
00:22:00.880 --> 00:22:02.880
Is this gonna show up on the appraisal?
00:22:03.120 --> 00:22:05.360
Is this going to affect the appraisal?
00:22:05.519 --> 00:22:09.039
How do we need to word this addendum so that the lending is gonna be fine on this?
00:22:09.200 --> 00:22:10.720
What does this addendum need to say?
00:22:10.880 --> 00:22:12.560
How do we need to propose this?
00:22:12.800 --> 00:22:21.200
Please lean, lean, lean on us as lenders because what you say and how you say it on the addendum can blow up a deal.
00:22:21.440 --> 00:22:23.840
So I've seen it happen a million times.
00:22:24.000 --> 00:22:29.039
You know, if things aren't done by closing, you know, you could have a couple outlets that you mentioned.
00:22:29.120 --> 00:22:32.480
Well, I got to send an appraiser out there to make sure these outlets are taken care of.
00:22:32.640 --> 00:22:33.519
That seems ridiculous.
00:22:33.600 --> 00:22:40.880
That's$150 extra cost to the borrower if I know about these outlets that need to be taken care of and it's on an addendum in that fashion.
00:22:41.039 --> 00:22:47.440
So a lot of times there's a lot of guidance that can happen from an addendum standpoint, from a lending standpoint, that can make it more lender-friendly.
00:22:47.600 --> 00:22:54.960
And that is not breaking any rules, it's not violating any laws, we're not doing anything that's, you know, obviously shady or anything, but it can be done.
00:22:55.039 --> 00:23:04.640
The language can be done in such a way where it tells the right story to the underwriter and the right story to the appraiser that can really head off a lot of issues in the beginning.
00:23:05.120 --> 00:23:06.080
Absolutely.
00:23:06.320 --> 00:23:07.840
Wow, lots to go over.
00:23:08.000 --> 00:23:09.840
I would listen to this twice.
00:23:10.320 --> 00:23:11.039
Yes, please do.
00:23:11.200 --> 00:23:11.360
Yes.
00:23:11.680 --> 00:23:13.759
And as this evolves, I'll get more and more detail.
00:23:13.840 --> 00:23:15.360
I just didn't want to overwhelm you.
00:23:15.519 --> 00:23:20.400
I mean, I'm sure there's a lot of information already, but like there's a lot more detail that's going to go into this appraisal.
00:23:20.480 --> 00:23:25.519
But those are just the highlights as far as real true specific things that you guys can do that can help the appraisal process along.
00:23:25.680 --> 00:23:25.920
Yeah.
00:23:26.160 --> 00:23:34.080
And that's why you should come back every week, because every week she drops priceless information that you will not hear anywhere else.
00:23:34.240 --> 00:23:35.360
At least I don't know.
00:23:36.400 --> 00:23:36.640
Yeah.
00:23:36.880 --> 00:23:46.240
I'm listening to other things and hearing other things, and not many people are showing up the way you do and and and educating us and keeping us in the know and ahead of the curve.
00:23:46.480 --> 00:23:47.759
So, so amazing.
00:23:47.920 --> 00:23:51.840
And I know the next six months, I'm sure we'll hear plenty, plenty more.
00:23:51.920 --> 00:23:53.279
So definitely stay tuned.
00:23:53.519 --> 00:23:54.720
Stay tuned in.
00:23:55.360 --> 00:23:56.000
Absolutely.
00:23:56.320 --> 00:23:56.640
Awesome.
00:23:56.800 --> 00:23:58.160
Well, thank you, Nikki, as always.
00:23:58.400 --> 00:23:59.120
Appreciate you.
00:23:59.200 --> 00:24:04.720
And how do they get a hold of you if they have questions or want to know more specifics about this appraisal changes?
00:24:05.120 --> 00:24:05.360
Sure.
00:24:05.440 --> 00:24:11.200
You can find me on social media, TikTok, Facebook, Instagram at mortgages from M N to A Z.
00:24:11.360 --> 00:24:20.320
You can also call, text me at 952-484-15E1584, or you can email me at Nikki at Kevnik Group.com.
00:24:20.800 --> 00:24:21.200
Perfect.
00:24:21.360 --> 00:24:21.759
All right.
00:24:22.080 --> 00:24:22.800
Till next week.
00:24:22.960 --> 00:24:24.480
Appreciate you and everyone.
00:24:24.560 --> 00:24:27.039
Um reach out to Nikki if you have any questions at all.
00:24:27.200 --> 00:24:29.360
She's an amazing resource, and we're lucky to have her.
00:24:29.920 --> 00:24:30.240
Awesome.
00:24:30.320 --> 00:24:30.880
Thanks, guys.
00:24:31.039 --> 00:24:31.200
Thanks.
