Tips when Talking to a Real Estate Appraiser

Tips when Talking to a Real Estate Appraiser

Over the past few years, there has been continued questions and at times misinformation as far as what is appropriate communication between real estate agents and appraisers. The industry tends to shift in extremes and went to the far extreme in the post 2008 real estate downturn where laws and regulations changed and loan officers were no longer allowed direct contact and communication with appraisers to avoid any undue influence. This in turn seemingly impacted how real estate agents and appraisers communicated as well.

I’ve attempted to be a resource for all real estate agents and professionals in the area. I welcome any questions about appraisal related issues and hope to be a positive resource for all real estate professionals in my market area. I receive phone calls and emails from agents about appraisal related questions and find the communication important in educating agents what to consider from an appraiser’s view point. Equally importantly, building relationships between myself and agents helps both professions.

Below are some questions and tips to consider during a transaction:

1) Discuss the subjects characteristics/features-
Feel free to share all information that you know about the property. The more information obtained, the more it helps us gain insight to the property. What improvements were completed? Are there important considerations you are aware of that aren’t so visible? Is there something impacting the subject’s marketability such as accessibility to property, etc?

Many agents do the above and at times will give me an improvement sheet at the appraisal inspection. Some agents do not but they are very helpful and useful to the appraiser.  One word of caution, focus on the relative characteristics and features of the property vs. one’s personal opinion.

2) Avoid any value pressure –
This is the biggest tip for any agent (and/or homeowner), AVOID any value comments that may have undue influence on the appraiser. Most agents understand this but it’s always a good reminder. From my experience, it’s more common homeowners that voluntarily share a value needed to make their loan work. Many times, homeowners will ask my opinion of value at the inspection. If this is the case, I politely steer the conversation away from that topic.

3) Provide list of sales that you considered –
Providing a list of sales for the appraiser to review is acceptable.  If you have sales that you’d like an appraiser to review, simply be respectful and polite about it. I get asked this question more on complex, acreage properties.

Example of what to say: “I’ve printed a CMA of the sales I considered when pricing the home and would like to leave a copy of it for you to review, would that be ok?”  If the appraiser declines, then be respectful and not force the issue.

When running a CMA, one important tip is to run the CMA with NO price range as part of the sheet. When a price range is included, one could argue that you are cherry picking the sales to support the sales price and may not be actual comparables.

4) What about an appraiser out of the area?
Part of my market area is the Foothills. From talking to agents and owners, I hear the most stories regarding bad experiences with appraisers not from the Foothills. Typically, it involves an appraiser out of the area who perhaps didn’t know the market from their perspective. While I can’t comment if that is true or not, I do find that the conversation is more prevalent when it involves Foothill/acreage properties.

Here are a couple tips if an appraiser was assigned who you’ve never heard of or has a phone number from different area code.

1) Ask what the appraiser’s experience has been in market area.

Be friendly, candid and explain that you’ve had some bad experiences in the past and are trying to avoid from happening again. One tip is to not phrase the question asking where they live. That can pigeon hole the appraiser and more importantly avoids the crux of the question which is if the appraiser is geographically competent for the area.

2) Look up the appraiser online.

Nowadays, many appraisers have a website and/or business profiles on yelp, google, social media sites, etc. You’ll likely gain an idea of the markets covered and what their experience is and will likely find reviews to read as well.

 

Summarizing, I hope this blog provides some useful tips and suggestions. If you have anything to add, I’d like to hear your thoughts. I wish you all a Happy Thanksgiving next week!

 

Bryan Lynch
Certified Real Estate Appraiser
Office: 530-878-1688
Bryanclynch@gmail.com

 

Disclaimer: All information deemed reliable but not guaranteed. The information is meant entirely for educational purposes and casual reading only and is NOT intended for any other use.  This information is NOT intended to support an opinion of value for your appraisal needs or any sort of value conclusion for a loan, litigation, tax appeal or other potential real estate or non real estate purpose. This appraiser is NOT a qualified home inspector and any tips are for informative purposes only. If you’d like to obtain and order an appraisal for your specific needs, please contact Bryan at 530-878-1688 for more information.

5 Comments
  • Joe Lynch
    Posted at 13:12h, 16 November

    Nice job Bryan. Happy Thanksgiving

    • Bryan Lynch
      Posted at 13:13h, 16 November

      Thanks Joe…I Always appreciate your input!

  • Shannon Slater
    Posted at 08:28h, 17 November

    Great tips! Thank you!

  • Jamie Owen
    Posted at 11:28h, 18 November

    Great points! I appreciate your mentioning being a resource to agents. That point was really highlighted at the AppraiserFest. As you stated, both can benefit. Great article! Keep up the good work!

    • Bryan Lynch
      Posted at 14:49h, 18 November

      Thanks Jamie! Yes, the more both sides of the aisle communicate, benefits all!