Home Buying in 33067>Question Details

Or30313, Home Buyer in Plantation, FL

Can you explain how a "field review" appraisal works on the VA loan?

Asked by Or30313, Plantation, FL Wed Jul 20, 2011

I am trying to close on a short sale. After 4 months of waiting, the lender finally agreed to my offer price. I was psyched because, based on my experience with the area, I'm getting a steal. I offered $300k when similar homes are being sold for $360k to $400k. Fully, improved homes (this one isn't) are listed on the MLS for $475k .

My VA loan was fully approved contigent on the appraisal. The VA sent their appraiser out and he came back with an value exactly at my offer price. My realtor explain that this is standard practice -- the appraiser will rarely value a home for more than the offer price even when the comps in the area are $60k more. Is this true?

Now, the VA has come back saying there was not enough comp data in the neighborhood for the appraisal. So, they requested an additional "field review" appraisal. Can some explain how that works?

I'm confident the house will still appraise. I'm just frustrated at the time to close -- over four weeks now.

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Answers

3
It means that they need a second Opinion about an appraisal previously done. Usually the previous appraiser did not do such a good job or did not know the area.

I had the same case last year with new construction in Palm Beach and the lender end up asking me (the buyer's agent) to sent them comps.
0 votes Thank Flag Link Mon Apr 29, 2013
A field review is requested by the underwriter/lender to establish a "second opinion" on the value of the property. The lender will order the field review from another VA authorized appraiser, they will provide him/her a copy of the current appraisal and the second appraiser will review the appraisal to "verify the accuracy" of the data and will go out phyically to inspect the property to again verify the condition, etc. This is fairly common practice in today's financing climate and would be moreso if there are not sufficient comparables within close proximity to the subject property.

I would like to think your agent is incorrect about appraisers finding values that mirror the purchase contract as their job is to warrant value, not match sales price. That said, I do think there are times that some appraisers just take the road of least resistance and the contract and appraisal will mirror each other.

For the record, it would not make any difference in the financing if the appraisal came in higher than the contract. The loan is always calculated against the lower of either the contract or the appraisal. The review should not take too long and, as long as you are correct in your assessment of the value of the property, everything will probably proceed nicely going forward. Best to you!
0 votes Thank Flag Link Wed Jul 20, 2011
A field review is requested by the underwriter/lender to establish a "second opinion" on the value of the property. The lender will order the field review from another VA authorized appraiser, they will provide him/her a copy of the current appraisal and the second appraiser will review the appraisal to "verify the accuracy" of the data and will go out phyically to inspect the property to again verify the condition, etc. This is fairly common practice in today's financing climate and would be moreso if there are not sufficient comparables within close proximity to the subject property.

I would like to think your agent is incorrect about appraisers finding values that mirror the purchase contract as their job is to warrant value, not match sales price. That said, I do think there are times that some appraisers just take the road of least resistance and the contract and appraisal will mirror each other.

For the record, it would not make any difference in the financing if the appraisal came in higher than the contract. The loan is always calculated against the lower of either the contract or the appraisal. The review should not take too long and, as long as you are correct in your assessment of the value of the property, everything will probably proceed nicely going forward. Best to you!
0 votes Thank Flag Link Wed Jul 20, 2011
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