Tips for Working with An Appraiser
Having a successful, smooth real estate transaction requires teamwork. We all know this, right? Your appraiser is a part of that team. Many brokers view appraisers as being on the opposing team. Not true. I was a certified appraiser for 10 years before getting my broker’s license. I hope to shed just a bit of light into what an appraiser’s job entails. I have always found that you get a clearer picture when you consider where someone else is coming from.
An appraiser is licensed in the state where they practice, just like brokers are. They worked long and hard for that license, just like brokers did. It is safe to say, just like brokers, they do not want to be fined or potentially have their license suspended. Appraisers are not looking to, “Kill your deal”. They are simply doing their job. If you understand a bit about what they do and why, this can give you a greater chance of structuring and accepting offers that aren’t doomed to fail.
Appraisers receive their instructions from the lender. The lenders are the ones with the money; therefore they get to make the rules. In a nutshell, appraising a home is like putting together a puzzle. Dominant features (square footage, bedroom/bathroom count, garage space, site size, age, and condition of the home, etc) need to be bracketed….one sale inferior, one superior, and hopefully one that is similar. All homes are unique. There is no perfect match; therefore you need the puzzle pieces to get a complete story. In addition, comparable sales need to be within a reasonable distance (usually a mile, but this can change due to lack of comparable sales or larger site sizes) and typically lenders do not want to see any sale over 6 months old.
When you submit an offer for your buyers or review one with your sellers, are you considering these things? If your clients want to submit or accept a wild and crazy offer, chances are pretty good that it will fail. It is your job to advise your clients. Yes, in the end we have to do what our clients instruct us to, but the more knowledge you have the more likely they are to put their trust in you. Know your market. Research comparable sales. If you can’t justify a purchase price chances are the appraiser can’t either.
You can’t score a run on a double without your teammate on second base.
Kym Knudson is one of the top Puyallun real estate agents. Please give her a call or email her at email@example.com if you’re thinking about buying or selling a property.
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