Frequently asked questions:
     ■ What is a 'Comp Check'?
     ■ Why is payment required prior to the completion of the appraisal report?
     ■ I need an appraisal, but I only want to pay for it if it is going to enable a loan for my
         customer / myself.  If you tell me that you can make that value, I will order the
         appraisal.  Can you do this?
     ■ How is the value of the appraisal report determined?
     ■ What should I do to prepare for an appraisal inspection?
     ■ May I have a copy of the report?
     ■ A competitor is advertising a lower appraisal fee.  Why should I order from you
        instead of them?

What is a 'Comp Check' ?
A ‘Comp Check’, also known as a ‘Value Check’, is a verification method that a potential client can use to check the feasibility of the values they are looking for prior to ordering a real estate appraisal. For example, if Mr. and Mrs. Borrower would like to refinance their home, but require their house to be valued at $500,000 for their desired loan terms, the lending company can call us and we will retrieve the public record and Multiple Listing Service data for the property and the neighborhood properties and supply them to the client. The client can then evaluate the value needed against these sales and a simple probability can be inferred.  For example, if the value range of properties similar to the property in this scenario range from $400,000 to $550,000 and there are 10 similar sales, 8 of which sold for more than the desired value and 2 that sold for less, then the client might infer that their $500,000 value sought is supported by the range of comparables and that 80% of the similar sales in the neighborhood have sold for as much or more than the needed value according to recorded sales in public record.  A client might also infer that $550,000 is likely the most that the property would appraise for and $400,000 the least, given typical property features and condition.  Sometimes we can also provide additional data to help with the decision making process such as favorable features in the neighborhood and property photographs from the local Multiple Listing Service.

When a 'Comp Check' is requested from Cwift Appraisal, two sets of data are provided. An automated set from 3rd party data provider that gives a snapshot of their interpretation of the market, which is also effectively an AVM (Automated Valuation Model) and an appraiser collected set of data from the public record and local Multiple Listing Service.  The automated version serves as a starting point for a conversation about sales in the area and when coupled with the appraiser’s data, the client can rest assured that they have the best information available to them to make their decision.

It is important to understand that under no circumstances can a 'Comp Check' be considered an opinion of value or an appraisal.  An appraisal is a process, not a value, and it is not truthfully possible or ethical to declare a value without going through the appraisal process first. It is also against the Uniform Standards of Professional Appraisal Practice, appraiser ethics, and the certifications that are required in a FNMA appraisal. 

It is wise to avoid any appraiser that is willing to declare a value prior to completing the appraisal process. For them to do so identifies them as potentially unscrupulous individuals cutting corners and abandoning appraisal standards that protect lenders and borrowers, usually in an attempt to capture business. They are not offering to provide the appraisal being requested, only a value, and in the end they may or may not supply the value - and the report is often not acceptable to a lender, especially in today's stringent lending climate.