I've noticed appraisals getting pickier lately too—had a friend whose appraisal came back lower than expected over minor cosmetic issues. Makes me wonder if lenders are quietly tightening appraisal standards along with credit criteria...anyone else seeing this trend?
Honestly, I don't think it's necessarily lenders tightening appraisal standards. Appraisers might just be getting more cautious due to market shifts—especially if home prices have been volatile lately. Cosmetic stuff usually isn't a big deal unless the local comps are pristine. Had a similar situation last year, but after challenging with better comps, appraisal came back fine. Might just be isolated cases rather than an industry-wide shift...
Agree with you on this one—it's not necessarily lenders suddenly clamping down. A few points from what I've noticed lately:
- Appraisers are definitely more cautious now, but mainly due to market volatility rather than stricter lender guidelines. They're probably wary of getting flagged for inflated values if prices dip again.
- Cosmetic issues usually aren't problematic unless comps in the area are flawless, as you mentioned. But I've seen appraisers get pickier if the market's shifting downward or if inventory is increasing locally.
- Another factor could be appraisal management companies (AMCs). Some AMCs have been pushing appraisers to justify their valuations more thoroughly lately, especially after recent fluctuations. Could be making appraisers more conservative by default.
- Also, lenders haven't broadly tightened appraisal standards yet—but underwriting departments are scrutinizing files a bit closer overall right now. Might feel like tighter standards even if official guidelines haven't changed.
Had a case recently where the initial appraisal was conservative, but after submitting stronger comps and some additional market data, it ended up fine. Seems more situational than systemic at this point...
"Seems more situational than systemic at this point..."
Exactly my experience lately. Had an appraisal come back low because the appraiser was cautious about recent sales volatility. After providing extra comps and a bit of charm (and coffee), we got it sorted. Feels like everyone's just extra careful right now...
After providing extra comps and a bit of charm (and coffee), we got it sorted. Feels like everyone's just extra careful right now...
Had a similar experience recently—our appraisal came in lower than expected, and the lender seemed overly cautious about market stability. Didn't have coffee handy, but after some back-and-forth with additional documentation, they eventually budged. Definitely feels situational rather than systemic at this stage.
