We've heard this twice in the past few weeks, and in both cases the assessment is wrong. First we have HUD and its efforts to license appraisers, something never contemplated by Congress. Given this simple concept, it then becomes necessary to create standards, test appraisers, audit their performance, plus maybe fine and jail those who fail. In effect, appraisers now face national licensing, HUD gets a new way to spend taxpayer dollars, and home buyers get, well, who knows what they get. The problem, of course, is that the premise is wrong.
Appraisers do appraisals.
That's a valued service and done right protects lenders and buyers alike. But appraisers are not home inspectors. They don't spend several hours at a home checking the structure and systems for condition. Poll a thousand brokers and you can be sure that not one has ever seen an appraiser open an electrical service box, undo a furnace, or climb on a roof. But unlike HUD, VA does not require appraisers to act as home inspectors.