Providing comps to appraiser, good or bad idea?

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I take a similar approach as Jerry Murphy in that I show the appraiser that I have a passion for and knowledge of real estate in the area and let the conversation flow from there. I try to keep it conversational like we are in it together - “can you believe the stuff that’s happening around here? I just saw a house over at xyz sell/list for blah blah blah” while we are talking about the renovations and why I rehab properties in the area. I do however provide a very detailed list of work done to the property with associated costs and value as well as dates. My last appraisal got me well above what I had hoped for and I think in part it was due to him viewing the property through the lens of “this person knows what she’s doing” which came from our chat. Delicate balance though; you have to give them space and respect their process. I usually start out by being super arms length and approach them later to offer details on the property and then let the conversation evolve. This way he has already gotten a lot of what he needs and doesn’t feel like I am being pushy/derailing him (or her!).

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I appreciate receiving comps, especially if it is a complex assignment. However, the comparables need to be legitimate. It helps if you understand lender requirements and guidelines which we must follow. And I do actually prefer a hard copy of the MLS sheets rather than a verbal of the address. I review and determine comparables as soon as I walk out of the property. If the provided address isn't already in my file, I have to log into MLS to review property specifics and validate comparables. Internet can be difficult to access in areas and I need my time to be efficient. A print out of renovations and upgrades is also helpful and sometimes required by the lender.

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Josh Dillingham Josh I would definitely provide comps and a list of items that were done to upgrade the home. Like Christopher said, build rapport with the appraiser, that is probably more key than the comps. I live in the SF Bay Area and things are going up, up, and up, so getting the properties to appraise is getting tougher and tougher. One thing we always do when coordinating with the appraiser is build rapport and then let them know we have some great comps if they would like us to share. We spout off a couple of addresses and we have only had one property not appraiser, got a different appraiser and it appraised $150k more than the last one. A lot depends on the appraiser and how that appraiser is managed, at least here in the Bay Area the appraisers are to some extent the gate keepers. But always send them the list of updates, because there are some key things that they may not notice that will add value. How that helps.

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It is a good idea. It at least puts the appraiser on notice that you did some research. My appraiser ignored a sale in an identical size and shape unit in my building that was $50K higher than his appraisal. I asked and he said he hadn't seen it. It was sold about a month earlier and I showed him the selling price. He was surprised. I know he had just used a couple of sales that he had been using for a while from my building. The next time I worked with him he appraised my place a bit higher than I expected. When I approached him I did it in a real friendly manner. I was excited to talk about real estate and wanted his input. I didn't approach him like 'hey, what's your problem?' It was more like 'hey there is some really neat stuff going on, can you believe it?'

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@Josh Dillingham I'm not an appraiser so take this for the grain of salt that it is but some will care and some will toss your thoughts in the trash (literally and/or metaphorically). Just in the same way that you telling a seller why he's overvalued his property stands a chance of being well received but also stands a chance of offending them. I have no idea how to predict what their response would be. What might make it "worse" is trying to use assessed value as a proxy for appraised value. I've never seen that to be relevant. It's probably even worse than saying "but the Zestimate is..." And if you showed 13 alternatives from the "same town" then I'd probably throw that away as irrelevant as well. Now if you have a model-match that sold 6 months ago 2 blocks away in the same subdivision and he's using comps that sold 1 month ago from 1 mile away, then you're at least bringing some relevant data to the table. So as an amateur (and I'm really an amateur) I'd assert you went down the "here's a lot of bad data" as opposed to "here's 2 comps that are extremely on point that show substantially different values".Again, I'm not an appraiser, so feel free to see my thoughts as "invalid" as well :-)

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Hi @Josh Dillingham,I play it by ear. When I meet an appraiser out at a property I am cordial, polite and most importantly APPROACHABLE, let them in and stay out of their way. I stand off in a corner and work on my phone or laptop, give them free run to do whatever they want. If they ask questions I provide any info or documentation they ask for. I don't offer anything though because it can be seen as trying to "push them" and that helps nobody.Many times (more than you would expect) they actually ask if I "know of any comps in the area". In which case I rattle off some addresses (because I made sure I was spot on before we got there and was most likely doing that on my phone in the corner, plus I know who sold what). I don't give them paperwork on them or MLS sheets etc, I just give them addresses... only if asked. This is one of those no hard and fast rule, if the appraiser is type A they want to run this and are waiting for you to give them a chance to show they are in charge. If they are more "Hey can you make my job easier and give me some comps", then I am your guy. Either way it is more of a follow and let them lead the dance.Good Luck!

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I did a cash-out refi last year. Had an appraisal done but the banks investors wouldn't buy the loan so I had to go to another bank. I met the 2nd appraiser, built some friendly rapport, etc. Handed him the paperwork from the first one, he then proceeded to appraise the property for $20K less. Guess what I am saying is that you can do that but it doesn't guarantee they'll pay any attention to it.

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Josh Dillingham I refinanced my home about a month ago. Days before the appraisal I got a mailer from a. Realtor that showed they sold a house similar size on the same road. I presented this to the appraiser when he was doing the appraisal. It was like someone dropped a brick of gold in my mailbox. To answer your question I definitely think you can provide some comps. For me, I played the “newbie” “first refinance” card so I think the appraiser was wanting to help me understand the refinance process, rather than taking it as I was doing his job for him. Worked out well because it appraised 20k over my target refinance number, woohoo!!

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I don't see anything wrong with providing comps. The appraiser is doing his or her job by valuing a home. Comps can provide additional information that may, or may not be taken into consideration during the process.

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I always include comps in a “Property Report” in order to “help with some data collection”. I had two similar/near exact MFR properties being refinanced (BRRRR) across the park from one another. I offered my Property Report to each appraiser. One came in at 200k. The other, 127k. While there are many factors at play there is only one reason for such a massive spread, the human element. 100+ points of data and a wrong step in the morning leading to an appraiser stubbing his toe or a rude barista could affect your lively hood & bottom line. Hilarious, sad, and true.