The Truth About Appraisals

Let’s face it, appraisals are one of the scariest parts of a real estate transaction. It can cause a deal to implode very quickly. It’s one of the reasons why having an experienced listing agent on your side is crucial. An agent has to sell a home twice: first to the buyer then to the agent.

My Strategies to Help Overcome Challenging Appraisals:

Appraisal Appointment

I never let an appraiser go to a property unaccompanied. Many appraisers have supra keys; if they think a property is vacant, they will go on their own and then you’ve missed your only opportunity to make an impact on the appraisal. I always meet the appraiser. And I make sure I come armed with recent sales, detailed information about the subject property, and any market stats that may prove helpful.

Engage the Appraiser

It never hurts to engage the appraiser. I’ve often heard complaints that an appraiser wasn’t interested in what the agent had to say. I’ve never had that experience. And I always found that if you position yourself in a supporting role and on the appraiser’s team, they are typically receptive to what you have to say and appreciate the effort you’ve made.

Demonstrate Value

If there’s something special about the property, I make sure I highlight it. Showing value to the appraiser is crucial to their calculations. I have put together shiny marketing materials specifically targeting the appraiser in order to illustrate what makes the house unique and worth the price we have sold it at.

Support Your Price with Other Offers

If you had multiple offers on a property, show those offers to the appraiser to reinforce the sales price. Buyers ultimately set the price and if you have more than one buyer making similar offers, it’s only more proof that your sales price is justifiable.

 

Additional Tips for Appraisals

It’s also good to know the rules that the appraiser needs to adhere to. When doing¬†appraisals, they can use comps as far back as one year. Lenders always want to see a comp at the asking price, a comp below the asking price, and one above the asking price. If you have a challenging property, you may want to consider getting an appraisal done prior to going on the market. It will help prepare you for what to expect and if the appraisal is strong, I share it with the appraiser in the transaction.

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