Appraisals: Is It Okay for Realtor to Speak to Real Estate Appraiser?

Working with Appraisers Can be Tricky?

The ?quick answer? is that real estate appraisers definitely?don?t want to be accosted by aggressive Realtors when performing an appraisal. And it?s not ethical for the agent speak directly to the appraiser regarding valuations. However, it is appropriate for an agent and/or homeowner to provide information about the unique ?features? of the home, and to offer clarity regarding potentially subjective or confusing notes in the listing.

Generally speaking, most agents will remain at a distance from appraisers to prevent any misunderstandings or ethical concerns.?However, there ARE things both the agent and homeowner should do to?prepare for the appraisal?in an effort to ?assist? the appraiser in evaluating the property (and to market the home to buyers). This does not mean the agent is trying to ?influence? the appraiser. Rather, the agent is simply providing potentially critical information to help the appraiser arrive at their own opinion of value.

Preparing For the Appraisal Well in Advance

When it comes to the appraisal, I prefer a more proactive approach ? which begins WELL BEFORE an appraisal. One way to help insure the right outcome at appraisal time is for your Realtor to both empower and help you prepare information which will support the desired sales price. Not only does this serve to possibly assist an appraiser, but more importantly, it?s vital to provide the information to potential home buyers!

Contrary to popular belief, this does?NOT?include providing a ?list? of comparable homes to the appraiser. Don?t waste?your time, because the appraiser has the duty to pull their own comparables ? and it can really ?ruffle? the feathers of some appraisers, which is not helpful. Also, an appraiser intentionally using comps provided by an agent could be a violation of the ?Home Valuation Code of Conduct? ? ?a set of standards which we won?t get into here.

Regardless, comparables chosen by a Realtor or homeowner will often not be the same as what the appraiser would chose anyway ? for various reasons which are beyond the scope of this post. Bottom line, an appraiser does not need our ?assistance? in choosing comparable homes. There are VERY exceptional circumstances which may warrant ?suggesting? comps? but most often, it?s wise to let the appraiser pull their own comparable data.

Focusing on the Home?s Unique Features

Instead, focus on the features of the home. One of the best ways to ?help? the appraiser, is to draw attention to the unique features of your home which the appraiser could easily overlook by?providing them with a list of improvements and custom features.?If your agent is doing a ?good job? in marketing your home, they asked you to prepare this ?feature list? when the home was listed, and it?s already been incorporated into the marketing materials. If this was the case? then you?re likely in good hands!

When preparing this information, make it a concise?bullet list, but also be detailed with items which may need further explanation. This would include the dates of the improvements (especially if they are recent), the materials used (brand names and quality grades are helpful), and even the amount spent on those improvements. (For reasons I won?t get into, do NOT to provide the contractor/vendor names.) Give this information to the appraiser when they first arrive with a polite exchange ? then get OUT of their way!

What About Short Sales & Foreclosures? Should I Point These Out?

Distressed sales, such as foreclosures and short sales, can obviously have a negative impact on the appraised value of a home. Generally speaking though, assuming there are relatively few recent distressed sales, this isn?t something to be gravely concerned about. An appraiser ?should? have access to plenty of information which will prompt them to the circumstances surrounding the sale of potential comparable homes. Keep in mind, an appraiser isn?t out to purposefully ?disprove? the contract price of your home ? they are NOT your nemesis. Instead, they are providing an unbiased opinion?demonstrating?if the home?s contract price can be ?supported? using available data. With this in mind, most appraisers will not intentionally use distressed sales as comparable ? unless of course, the neighborhood is filled with them. That?s another story of course?

What If The Valuation is Too Low?

Different areas of the country have various procedures for dealing with low appraisals, so this is a question for your Realtor. However, in general, the homeowner in working through their agent, will usually have the opportunity to have another appraisal done at their expense. It?s also possible the buyer will back out. It?s best to speak to your agent about the possible scenarios in these circumstances. But, don?t worry too much ? assuming your home is priced at, or near true ?market value? and is in good condition, a low appraisal shouldn?t be a concern.

Buying or Selling on Seattle?s Eastside? Contact Me!

As a Realtor on Seattle?s Eastside, ?I pride myself on taking an active role during each step of the buying and selling process ? including appraisals. It?s a commitment I make to help insure that each and every closing finishes as planned. If you are looking for an?Issaquah, Sammamish & Snoqualmie?Realtor who will be by your side from start to finish contact me today ? drop me an email, or give me a call!

Source: http://www.anthonygilbert.com/is-it-okay-for-realtor-to-speak-to-appraiser/

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