As an Appraiser, I wanted to clear up some misconceptions which are being propagated. This may make my (and other Appraisers) jobs simpler. This may also make your life easier. Consider this post a public service.
Each Appraiser provides a similar service, but the manner in which they provide that service may vary. My comments are related to how I run my appraisal business. Many Appraisers I know operate their business in a similar manner.
This post applies to responsible, competent, qualified Appraisers. There are scam artists and incompetent people everywhere. I'm not addressing these.
1. An Appraiser's Client is typically a Lender. An Appraiser's responsibilities are to the Client. If the Seller would like a valuation service performed, then an Appraiser would be happy to comply with the Seller's request for an agreed upon fee.
2. The Appraisal is the Client's, not the Seller's.
3. The Seller does not "Control the Appraisal". See item 1 above.
4. Providing information on the Subject property is always a good idea. This information must be provided upfront at the beginning of the assignment when the Appraiser begins his research and first contacts you. The Appraiser should always request this type of info from the property contact. Unfortunately, when you wait til after the Appraiser has performed his research to disclose this information, then the Appraiser may have to redo the research. For example, if the Subject property's GLA is much larger/smaller then the documented sources (i.e. tax records, MLS, etc), then the Appraiser's Comp research will have to be redone because the Comp selection was based on an inaccurate description of the Subject property. These type of issues should be disclosed when the Appraiser first makes contact.
5. The Appraiser reports and analyzes the neighborhood market data. The Appraiser does not create the market data. The market data is what it is, either good or bad based on your view.
6. Providing hand picked Comp Candidates to an Appraiser is an indication that the neighborhood Comps will not support the Seller's desired value, the Seller knows this and is trying to influence the Appraiser. If the neighborhood Comps support the Seller's desired value, then the Appraiser's research will disclose this.
6a. There are exceptions to providing Comp Candidates. An example is when the Subject property is a special or unique property such as rural property and there are no similar Comps nearby. Providing Comp Candidates in a typical subdivision neighborhood is of no help.
7. The last thing the Appraiser wants the Property Contact / Seller to do is start a personal conversation with him. The Appraiser is trying to perform a job and has a schedule. The Appraiser doesn't have the time or interest in discussing his family or other personal issues with you. If you have business related items, then the Appraiser may be interested in them.
8. The Client identifies how the Appraiser obtains access to the Subject property. If there is a phone number, then the Appraiser calls and make arrangements for the inspection. The Appraiser tries to complete the inspection as quickly as possible. The best way to prepare for this is to install a combo lock box on the property and provide the Appraiser the code when he calls.
9. Being present during the Appraiser's inspection is a bad idea unless there are specific issues which require you to be there. Most of the time you are in the way and increase the inspection time.
10. If you have information for the Appraiser, it MUST be submitted as soon as the Appraiser contacts you. The Appraiser must consider this before the Appraiser begins his research.
11. Don't rely on a BPO. BPO's are performed by people with little or no valuation training.
12. The following "tricks for working with appraisers and appraisals" are what you should be doing:
- Prepare for the Appraisal. Prepare any info you want to send the Appraiser and install a combo lock box on the property.
- Be prepared when the Appraiser 1st contacts you. Disclose any issues (good or bad) with the house and submit any info you have to the Appraiser immediately so they may review it upfront.
- Be responsive. When the Appraiser contacts you, return the call quickly and provide access to the property. Make sure you provide the correct phone number rather than the assistant to the assistant to the assistant who then needs to locate the person with the property access.
- Install a combo lock box on the property BEFORE the Appraiser calls. You can then provide the combination to the Appraiser. This allows the Appraiser to perform the inspection as quickly as possible and avoid delays while working around your schedule.
- Do your own neighborhood market research. There should not be any surprises in an Appraisal. If you have to use Comps from different neighborhoods to obtain your desired value, don't be surprised if the Appraiser uses the similar recent sales and active listings on the Subject's street and obtains a lower valuation.
I highly advise you pursue the professional, competent approach rather than the "suck up" approach when working with Appraisers. You'll receive much more respect in return.
As described earlier, the Appraiser reports and analyzes the market data. The Appraiser does not create the market data. It is what it is.
regards.
