Make the appraisal process a little smoother for your clients. This handy checklist created by instructor Candy Cooke includes information you may want to share with appraisers.
- Complete executed contract including all addenda and amendments. The lender does not always send all documents to the appraiser.
- Copy of previous survey. The T-47 Residential Real Property Affidavit (TAR 1907) does not have to be included. The survey provides lots of information for the appraiser including flood hazard area and encroachments.
- List of improvements provided by the homeowner.
- Information about multiple offers. It is up to the sellers how much they want to disclose. They can give copies of all offers or just bits and pieces.
- Blueprints. If the property is unique, large, or difficult to measure, plans will help the appraiser.
- A list of recent sales and listings in the neighborhood that you have deemed similar.
- Information about any off-market sales or pocket listings.
- Information about comparable properties that may have issues. If you know of something that is
wrong or not disclosed in the MLS, write it on the comp and provide to the appraiser. - Your CMA.
- Information about what other properties the buyer viewed. This takes cooperation with the listing and buyer agents.
- Information about the neighborhood. This can be a link to neighborhood info.
Is there any issue with providing comparable sales to appraisers that are not affiliated?
Just attended an appraisal class yesterday, so this is timely, thank you! How would one get sales, financing or distressed information about off-market sales or pocket listings?
I don’t believe this is any thing needed by appraisers. They are bricks and mortar. I do see how this would help the disrupters in trying to cut the Realtors out of the Loop and allow the buyers unescorted to learn about the home and neighborhood.
Some of that information is designed to persuade the appraiser.
I am an appraiser. Yes, as an appraiser I would love to have all this information and it would help me in the appraisal process. Don’t worry about persuading the appraiser. Your job is to advocate for your client and we understand that. It is our job to cut through the BS and produce a market supported opinion of vale. I find those realtors who make the effort to assist in gathering this information tend to be viewed as better at their jobs; a reputation that tends to earn them more and higher quality (and value, i.e. commission) listings. And… Read more »
Well stated Mr Barnett and would love to have these docs. These will help determine what characteristics went into the selection process for the subject’s list price. I often ask the listing agent how did you derive your list price. If the Realtor does their homework and learns to read the market area of the subject they typically won’t miss the target. I too am an appraiser
Daniel you are 100% correct. I always provide appraisers with all of the listed above regardless of the which party I represent. I look at the Appraiser’s part of my team member to help me succeed. In order to be successful you have to know your inventory & that is “any activity” in the area that we claimed to be an expert . That’s the difference between mediocre and over & above agent.
Daniel this is great information and I totally agree that we as Realtors should be the advocate for our clients. Thank you for your comments
It’s interesting to me that the instructor labels them “off-market or pocket” listings and the appraisers in responses simply call them “pocket listings”. I’m not sure what the definition of “pocket listing” really is, but it appears that some may have lost touch with the idea that there are “non-association” agents out there that aren’t on MLS listing and selling properties all the time. Same with FSBOs. Also interesting how many unsolicited emails I get daily advertising an “off market” property. Some agents and appraisers seem to think that if it’s not on MLS, it’s not on the market, and/or… Read more »
In a non-disclosure State, a property that as sold outside of the MLS is helpful, but often cannot be used in the final appraisal report for the simple fact that in a mortgage-related real estate appraisal the appraiser must confirm and verify all data from two independent sources. This simply cannot be done apart from the provision of a HUD1 closing statement and the willingness of the REALTOR to share non-public information. 90% of the time this information is not made available to appraisers.
Understood. And that has to be frustrating. Often in my market, there are better comps that didn’t make MLS than did. They ‘ll go in my market analysis but not into the appraisal. Sometimes the values are similar, sometimes not. I’d rather share the info with appraisers than sell my listing cheaper just to get a “conforming” appraisal.
As an appraiser I, too, would like this information. But I would change #11 to information about the homeowner’s association or condo board. I generally know about the overall neighborhood, but need to know specifics about how much HOA dues are, what they cover, what are the common areas and amenities, etc. Most MLS systems have a place for this data, but sometimes the blanks are not fully completed.
I have been using Candy’s list for several years now to make sure the assigned Appraiser is completely familiar with everything surrounding specific listings. Making sure clients get the full market value for their property is what they are paying us to do! You give the appraiser information, not direction. you list facts, not value.
Also, the HOA must be contacted by the appraiser anyway to determine whether or not there is any pending litigation against the HOA. This piece of the puzzle is often left un-sought and can lead the end user to a place that is not intended.
I recently sent 3 comps to the appraiser “that he may want to consider”. This was the reply I got back – “ Thanks for your consideration. However, I would to caution you about something. While I certainly know that it is not your intent, you need to be very careful about sending comps to appraiser’s unsolicited. Some appraisers might interpret it as an attempt to influence value, which is a no-no. I would hate to see you, or any of the wonderful agents I know get hit with a charge of attempting to influence value by some arrogant a$$hole… Read more »