Realtors:

TIRED OF GETTING BEAT UP BY YOUR APPRAISE?

All appraisers (as well as Realtors) are not created equal!!

Many newer appraisers with little or no brokerage experience don't recognize you as the professional in your market place and consequently won't take input from you on what you consider are the best comparable sales. Many times you know of something that just sold and hasn't hit MLS yet.

I have been a Realtor for over 40 years and fully understand where you're coming from. Here in Florida we have transactional brokerage which means (If you and your broker elect to practice it) that you no longer have to have a fiduciary with the seller.

So, if you are really in the mindset of being fair to both buyer and seller, than you should be interested in coming to a true fair market value for your transaction. A fair market appraisal can be so very beneficial to that transaction because it brings that third party expert valuation to the table to help you get that seller down to reality.

Most modern appraisers will be happy to perform a "short form" 2055 interior report form appraisal at about 75% of the full fee just to get the parties on the same page. In the event that the buyer's lender select's the same appraiser, the report can be expanded and (with a narrower scope and reduced fee) then subsequently ordered by the lender.

HOW TO "BEAT UP" YOUR APPRAISER!

If you want some control over the final results, you need to gain your appraiser's respect first.

1. Be there at time of inspection armed with the following:

(even if you think the price is a 'slam dunk', be there!)

a. A clear copy of the survey (if not a condo) as it saves the appraiser measuring time. (Time is money to him/her also!)

b. A copy of the contract which is needed for the appraisal (per FNMA guidelines)and also shows the date of final signing. Don't leave out addenda which have seller's contribution to closing costs. They really don't affect the final value anyway.

c. All the sold comps you have for your CMA (which you should have prepared for your seller anyway) and any more recent ones. Use common sense in selecting these by asking yourself "Would the typical purchaser of this property have considered these comps, had they been available, as an alternative to the subject?" If the subject is not in a gated community, don't select comps that are!

d. If a condo, know the following and don't be afraid to volunteer this info: # of units in the phase and in the project, Does the condo association run things or is there a management group and if so, the name and phone number of the group. Is there a rec lease? What's included in the fee? # of elevators in the building? Is there an assessment in place? (roof, lobby decorating, etc. ) (All of this in writing would be appreciated.)

2. Let the appraiser finish measuring the property and doing the sketch before bombarding him/her with distracting chatter. A good appraiser will ask for upgrades, etc. as a final step. If they don't then volunteer them at the end.

3. Don't ask the appraiser "Do you think it will come in OK?" You are not the client, the lender is. Most appraisal assignments are quite clear in their language and "Don't discuss value with anyone!" is usually present in the instructions. If the Realtor (instead) asked me "Do you think I should try to find more comps for you?", I would be more inclined to hint that better comps were needed. That should tell you what you need to know. The better appraisers can pull down the MLS pictures electronically without having to make a second trip to snap photos of the additional ones you come up with.

4. If the appraiser agrees to discuss comparables sales with you, do not point to any of his/hers and say " Oh, that's just not comparable!" Some of we appraisers, silly as it seems, think we are better trained than you to know what constitutes comparability!

5. Last, but not least, don't be the type of lister who lies like a rug in describing your property in the MLS blurb!! This is all the appraiser who uses your sold listing as a comparable has to go on when gauging condition and upgrades to compare with our subject. If you say "Ready to move into!" we shouldn't have to guess that you meant "for a family of pigs!" There are pleny of way of accentuating the positive without misleading the public. These days we never know who will read that listing.

If I am treated by a Realtor as detailed above, I know I am dealing with a professional who respects me and my time constraints. I am more likely to loosen up a little and treat their input more seriously than someone who says "I'm too busy. Getting all that information is your job!" Sometimes the comps that you think are most relevant may be in a nearby competing subdivision or condo. Will the appraiser who doesn't respect you bother to look outside that narrow area when there are plenty of lower priced comps right there? I don't think so! Remember, the appraiser normally collects his professional service fee whether or not your value is there. If the appraiser can support that value (sometimes with your expertise) then most of us will, particularly if you respect us!

Today many selling Realtors have a great deal of input with the mortgage representatives their buyers end up with in selecting an appraiser. If you like the way I think (as outlined above) please recommend me to your mortgage rep and  ask him/her to click on Staff Profiles on the Home page to see the list of investors I'm approved with. I accept credit cards, checks and even faxed checks (something new) from your buyer who might not even be at the inspection.

Also, please feel free to call me with any questions you might have on residential appraising. I also do pre-appraisals (see Pre-appraisal page)

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