Over the years, we have heard the same question from Realtors and homeowners:
Should Realtors meet Appraisers at the property? Should homeowners make sure they are home during the process.
While every Appraiser may have a different process when they are at the property, the answer could be yes or no! Let me explain. Realtors Can Provide Valuable Information
Realtors have a wealth of knowledge that can be extremely helpful to the Appraiser—not only about the subject property, but also about comparable properties.
Appraisers typically do not go inside the comparable properties they use in an appraisal. Unless the Appraiser has personally appraised that property before, they must rely on information from the MLS, previous appraisal records when available, and Realtors who have been inside those homes.
A Realtor can provide valuable insight into the condition, quality, upgrades, location, and other characteristics of comparable properties that may not be obvious from the MLS listing. Homeowners Have Valuable Information as well
Homeowners, of course, know the details of their home better than anyone. They can answer questions about improvements, renovations, upgrades, dates of completion, and other features that may affect the property's value.
That information can—and does—make a difference in the final valuation. When would the answer be NO? When you follow the Appraiser Around inside our outside of the home.
Appraisers have a process they follow when inspecting a property. That process includes measuring the home, inspecting the interior and exterior, taking notes, and observing details that may affect the appraisal.
The last thing you want is for the Appraiser to become distracted and miss something during the inspection or, more importantly, make an error while measuring the home.
If you follow the Appraiser from room to room, there is a greater chance that something could be overlooked.
Give the Appraiser room to do their job. They will ask questions when they need additional information, typically after their inspection process Put Together a “BRAGG Sheet
One of the best things a Homeowner or Realtor can do is provide the Appraiser with what we like to call a BRAGG Sheet.
Put together a simple list of:
Have the list available when the Appraiser arrives.
The Appraiser will ask questions during the inspection, and your BRAGG Sheet may answer many of those questions before they even have to ask. Realtors: Don't Be Afraid to Provide Inferior Comparable Sales
Realtors can also be extremely helpful by providing a list of comparable sales and current listings.
If you provide comparable sales, consider adding notes explaining why you believe each property compares to the subject property.
And here's something important:
Don't be afraid to include homes that sold for less than the subject property's purchase price. Simply explain why you believe those properties are inferior to the subject.
Many times, Realtors provide only properties that sold for more than the subject. Appraisers see through this.
A much more useful approach is to provide both superior and inferior properties and explain why they sold for more or less.
For example:
Then leave it at that.
You're providing the Appraiser with information—not telling them what the value should be.
You can give this information directly to the Appraiser when you meet them at the property, or you can leave it with the homeowner for the Appraiser to review. We Are All Working Toward the Same Goal
At the end of the day, Realtors, Homeowners, and Appraisers all want the same thing:
A credible appraisal that reflects the market and considers all of the relevant information about the property.
Realtors and Homeowners can provide valuable information that the Appraiser may not otherwise have. The Appraiser's job is to carefully review, verify, and analyze that information along with the other available market data.
So provide the information, answer the questions, and then give the Appraiser the space to do their job.
One final note: If you have a recent previous appraisal of the property you can provide this to the Appraiser if you wish. It could be helpful and save time if you have a larger home that does not need to be fully remeasured. However, the Appraiser MUST verify measurements to make sure they are accurate.
Thanks for stopping by!