“It’s an appraisal ordering service, that’s it. They aren’t being used for quality control,” Binkley of told MortgageBrokerNews.ca. “They add another step, take more time, take away the conversation from licensed professionals, and costs the client more in the end.”
Binkley remembers a time when the process was simpler and more efficient.
“Before, we’d always had the opportunity to call our appraisers and have a chat with them about the property, order it direct and the client either pays at the door or the appraiser invoices us and we collect it at closing or the client reimburses us, whatever might happen there,” Binkley said. “Very simple, easy process. That system had been around the years and it worked.”
According to Dupuis, the process has resulted in several deals going south – and brokers are feeling the pinch.
“I had comparable [properties] showing $2 million on this deal and [the appraiser] comes in at $1.725 million and I need $1.85 million to make the deal work,” Drew Donaldson of Verico Safebridge Financial told MortgageBrokeNews.ca. “There’s a bunch of other people in the office experiencing the same thing.”