Preparing for an appraiser?

[Bruce Woodruff]

So, Realtors, how/what do you do to prepare for an Appraiser when you feel that the house is at the top end of pricing, yet you got a full price offer? I've been there and have heard of the Buyer's Agent meeting the Appraiser with a packet full of Comps, a list of the house's features, and other documentation to support the price. I've heard of and seen it work....

What do you do, or what have you done that has worked?

[Bruce Lynn]

YOU make the job easy for the appraiser.  Every appraiser I've ever spoken with says they appreciate the info we leave for them.

1. Pick the comps.....if there are questions, explain them. Why I didn't pick this foreclosure, or why I picked this or that comp a mile away. Explain what goes into the pricing...school districts, direction of the home (some ethnic groups like East/North), style, size or whatever you need to explain to a 5 year old....tile roof vs asphalt or whatever. Tell them why the value is there that they may not know about. You may be the neighborhood expert, they probably are not. So explain it to them. I print the full MLS copies for them and also the summary. I try to think, what do they need to make their job super easy. They're busy, they're stressed, they're under pressure. How can you solve that problem for them.

2. List and receipts for upgrades and updates.

3. How many offers and at what price and I list those out and give them the 1st page of the offers.  I had argument with an appraiser one day.  He was telling me the subject was not worth it (not good for me) I told him I had 13 offers at or above asking price within 3 days on market.  I told him he may not think it is worth the price, I may not think it is worth the price, but the MARKET is telling US that it is very much priced right.  He is supposed to value at MARKET price.  I got value at or above contract price on that one.

4.  If the inspection report is perfect, show that.

5.  Every appraiser has told me they're appraising the house, not the staging, but I can almost guarantee that a nice clean staged home that is cold on a hot day, has all the lights on, smells good will appraise for a higher price than a foreclosure dump that smells and stacked full of trash.  We're all human.  If it is a cold day, a warm house with a fire live in the fireplace and the smell of hot chocolate appraises for more.  

6.  Any other info that can support your price...school rankings, city rankings, positive news articles etc.  You're selling the house not only to the buyer, but to the appraiser as well.

I have often done this for sellers, almost never for buyers, until I got messed around a few years ago, buyer got scared and backed out.  He had the deal at a steal of a price.  The house was probably one of the best he had seen over a 2 year search.  Everyone that walked into that house got big eyed and had the WOW awe....inspector, roofer, estate sale guy, one of the neighbors, etc.  All were like WOW you got this house for what price?  It was not unique, just custom and everything upgraded and one of those homes where you really can't find a complaint or issue.   Appraiser used comps 10 miles away, different school district, different sizes, I think all had 2car garages, subject had 3.  Weirdest appraisal I've ever seen. After that I would do them for buyers too.  I don't want this left to chance.  I want VALUE or better.  House ended up selling for about $5000 more than we had contracted.  Maybe $400K house.