Is it the Appraiser's job to Show that the House is wor
th the Sales Price?
Several years ago when it was a strong Sellers market, the prices continued to go up, up and up. The Sellers and their agents continued to press the Price Envelope not knowing when an appraiser would push back.
In today's market, many homes have lost large amounts of equity and Sellers still try to push the price to avoid bringing money to closing. Unfortunately, many Agents let them. We've probably all been guilty of having a listing a little high. Sometimes we agents just have a difference of opinion. I've worked certain neighborhoods and have seen ALL of the inventory. It helps me to price the homes correctly and to help Sellers truly understand what's happening in their neighborhood.
This happened recently:
I put a 1960's ranch on the market near the top of the price range for the neighborhood. There was no inventory and this is a VERY sought after neighborhood. The Sellers had taken excellent care of the house and had updated many things. But the updates were not in line with the quality one would expect in this neighborhood. Not as bad as Lipstick on a Pig, but not what a Buyer would expect when the MLS says "Updated".
We quickly received an offer on the house. It was workable, but the buyer wanted to come back and see the house again before they responded to our Counter Offer. During this next visit, they started having second thoughts. The roof was older than they remembered and maybe the house was over priced too.
At this point, I was very thankful that I had a great relationship with the other Agent and we weren't pointing fingers at each other. After a couple of days of negotiating we came to terms on a price with full knowledge that the house had to appraise for Sales Price.
This is where I think many agents drop the ball. You came up with this price with the Seller, now you need to help justify where the asking price came from.
I always meet the appraiser at the house with the comparable sales that 
we used for pricing and an explanation WHY we used them. Then I shut up and let them do their job.
Many appraisers have not seen all the recent sales in the neighborhood. With the new lender rules, many have never even been IN the subject neighborhood. I am never pushy with the information, I just politely ask if I can give them the information that we used to price the house.
When an appraisal comes back low and the appraiser asks for more information, your chasing the cows after you've left the gate open, in my opinion.
Thankfully, in addition to the comparables, the appraiser asked for a list of repairs, updates and some other things that he felt gave the house value.
The house appraised fine and a Happy Ending was Had By All.
Connie Harveyis a local agent with Pilkerton Realtors, serving home buyers and sellers in Nashville, TN, Brentwood TN, and Franklin TN. Let her help you realize your Real Estate goals. She can be reached at 615-371-2474.
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This is the most important paragraph and one that many agents "forget" or drop the ball: Thanks, Connie!
I always meet the appraiser at the house with the comparable sales that
we used for pricing and an explanation WHY we used them. Then I shut up and let them do their job.
Connie, I believe we may all have been advised "hands off" the appraiser. I believe we help them to their jobs and create a winning situation when we do provide the comps we use ... so the appraiser knows where we are coming from. This is what real, true professionals do. Great job!
Connie
The comparable sales (closed) and the market sets the price.
Good luck and success.
Lou Ludwig
I leave comps on the kitchen table in a large envelope clearly marked as such. I avoid contact but the comps are generally taken by the appraiser.
You are a very smart agent. You should always meet the appraiser with fresh comps, P&S, deed, plot plan, etc.
Suzanne - I was taught early in my Real Estate career to keep tabs on as many things as possible. I never tell anyone how to do their job, but I don't assume that they know how either.
Kathy - Thank you. Some people don't agree with this but it's saved my butt many times.
Karen - The rules have certainly changed, but we don't have a "hands off" policy here.
Kathleen - One can always over step the boundrys here but I try to use a very professional attitude and treat them with the utmost respect.
Connie - You acted as the true professional that you are! You balanced the push with the shut up. Nice.
Sincerely,
Cathy Bureau
♥X☺X☺X☺♥
Cathy - thank you so much. I try. :)
Connie Good for you - I also meet with the appraiser when possibble, but always provide them with comps to support the sales price
If all Realtor's did their job and met with the appraiser to provide comps and other relevant information, we would have many fewer appraisals coming in below market value. The more information you have that supports value, the more likely you will get value.
Connie I hope a lot of business or vacation is the only reason you are not posting