7 ways to avoid appraisal problem

Making value on a listing that you have under contract is crucial to getting your deal done. Setting yourself up for success before the appraisal is finished helps tremendously. Here are some steps I have taken over the years to make sure we have no trouble making value.

Be involved for the scheduling

Scheduling used to be something I delegated to my assistant. I have great assistants. They do an amazing job. As great as they are, I have found that being involved with the communication with the appraiser is very helpful because I get to sell them. It really helps to have the salesperson do the selling. These days we get their emails and phone numbers usually, so I make sure I email them supporting information.  

Be nice to the appraiser

This seems like a no brainer, yet I know a lot of agents that are adversarial from the start. You catch more flies, bees and many other things with honey. If the appraiser is in a bad mood, try to make them happier. Get them into a positive mood before they write their report!

Clean the house

This is another thing that should seem obvious, but you would be shocked at the condition people leave their house when it is appraisal time. Will a house that is clean and fresh be valued the same that is messy and dirty? In my experience the clean house is going to get a better value. A dirty house will feel worn and may have problems with value based on overall condition. The house may be in great shape, but it won’t appear that way.

Leave refreshments and a welcome note

It is HOT in Texas, even during the winter sometimes. I try and leave 2 bottled waters and a note welcoming the appraiser into the house.  It is a nice gesture and helps put them in a better mood. I also make that either me or the seller leaves the lights on, opens the doors, blinds, etc.

Write a detailed report citing why you believe in the value

In addition to providing comps, I have found it to be very helpful to write a narrative of why we came up with the value. Many times we get listings in sections of a neighborhood that perform better than others and the appraiser does not know that. They may be from a different part of town and have little knowledge of the area. Perhaps you have a 4 bedroom house and everything is a 3 bedroom, which makes it extra valuable.

Provide the comps you used 

We all know the appraiser can get access to the same comps we do. That doesn’t mean they are going to use the same comps we did. It is important to  narrow the list of comps to the best ones and put those front and center when the appraiser comes to the house. I put it along with the refreshments and welcome note. If you are unable to make it to the house before hand, make sure you get the appraisers email and send them.

Detailed list of repairs

When we list a house we usually ask for a list of updates and make note of it. Take it one step further. Expand the list of updates and include the cost of the repairs. Have receipts if available also. We do this on house flips, but this works as well on a standard resale transaction. Leave these at the house or email to the appraiser.

There are other methods such as not over pricing the house and not adding a bunch of closing costs as well. I just wanted to hit the main strategies I have used before the appraisal. They also work after the appraisal as well to contest the value. Lets try and do them up front so we do not have to contest them after the appraisal is issued!

Join the discussion on this topic and others in our FREE Facebook group  https://www.facebook.com/groups/AgentResultsCommunity