Realtor Tips - The Appraisal Process

What Realtors Need to Know About the Appraisal Process

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As a listing agent, your goal is to make the process as painless as possible for your client. Understanding the appraisal process will help you better manage your listings and client expectations.

As appraisers, we follow stringent guidelines to prepare reliable, unbiased reports for our clients. Understanding our approach to valuation and how we fit into the equation will make you stand out to your clients and ensure a smooth transaction for all parties involved.

You may think that appraisers are a necessary evil, however having a third party valuation is important to mitigate the lender’s risk.

First, it is important to understand that the buyer is not our client. Our fiduciary responsibility lies with the lender. However, conversations between agents and appraisers are not frowned upon.

In this article, we will cover what you can provide to the appraiser, so we have the most recent and accurate data when preparing our report.

1.       Have a list of improvements ready to go

MLS is a great source of data – curated by agents for agents. And we use it on a daily basis. Take time to prepare your listing with accurate information regarding improvements, quality, and condition of the home.

When the appraiser calls you to set up the inspection of the home, have a list of improvements ready to go. This is for your clients' benefit, because we need the most accurate information to create an accurate report.

Better yet, have it uploaded to the documents section in MLS, so it is easily accessible to the appraiser.

Clients will appreciate the extra effort and attention to detail, reinforcing their confidence in your ability to manage the sale effectively.

2.       Provide a sketch of the property and the square footage

When listing a property, square footage is one of the primary metrics potential buyers take into consideration. It is also something we as appraisers consider when comparing the property to recent sales in the market.

During the inspection, the appraiser will measure the property and use these measurements in the report, but it is always a great idea to give the appraiser a sketch you may have of the property. With a sketch in hand, the appraiser can plan their visit more effectively, knowing in advance what to expect in terms of the property’s structure and layout. This reduces the likelihood of missed details or overlooked areas.

If the property has unique features such as extensions, additional rooms, or significant modifications, a sketch can highlight these elements clearly. This ensures that the appraiser recognizes and includes these features in their assessment.

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3.       Provide a list of comparable properties

The appraiser will research comparable properties to develop a sales comparison approach to value. This is your opportunity to make the appraiser aware of any comparables that are similar in appeal to your property.

There may have been a for sale by owner house right across the street that is very similar, however it may not have been listed on MLS! The more data the appraiser has, the better. Grab a flyer on the way to your listing appointment and make sure the appraiser has a copy!

It is important to note that an appraisal is an unbiased opinion of value. An agent does not have any influence on the valuation, however making data available to the appraiser doesn’t hurt.

Stay proactive, informed, and engaged, and the appraisal process will be a stepping stone rather than a stumbling block in your real estate transactions.

Have these resources ready to send to the appraiser when you are called to schedule the inspection. Doing so will help facilitate the process tremendously and show you are on top of things to your client.

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