I recieved a big surprise Wednesday morning when I learned that a home I was reprsenting the seller on appraised for $25,000 less than the contract price. This was the same home we priced $15,000 less than the two best sold comps a couple months earlier. What left me dumbfounded was these same two comps didn't even make it to the appraisal and they were closest in square feet, floorplan , and subdivision quality. What gives?? My biggest challenge is that most appraisers are under the incorrect assumption that they CANNOT have a conversation with the Realtors involved. It's permitted as long as the subject property is not discussed in any way, shape, or form. So why the roadblocks when I try to reach the appraiser and ask a couple simple questions, like why were the two most comparable homes that sold recently left out of your report? Or, why is the contract price on your report off by $15,000?
My point here is that I've realized that it's my responsiblity to go a step further and help to acquaint the appraiser with the area by putting together an appraiser welcome kit at the subject property, by including items like the comps used to determine selling price and details about all comparable listings and sales in the area. Let's face it they simply don't know the story behind house around the corner that's still for sale and for less money. And we do. We're in a time and place where things must be done that in any other market wouldn't be necessary. Sure, I'm bummed my deal fell apart, but now I know what to do to combat against this in the future. I love the market now because of things like this. The learning curve is on a vertical plane and that's something we don't get to experience enough.
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I'm Kevin Wood of Realty Executives, and I'm the author of this post. You can reach me through email at kwood@gotucson.com , 520.260.3123, or visit my website at HomesInfoTucson.com. I have helped people just like you move in and out of Tucson for over 4 years. In a previous career, I represented Honda Automobile Corporation for 10 years. During that time, I placed among the top 5% of all sales consultants nationwide for overall client satisfaction and volume. My office is conveniently located on Kolb Road 1/4 mile south of Tanque Verde.
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Take it from an old timer.
GET BACK TO BASICS.
Once the inspections are completed and that's going to be quick, get that keybox off and instruct the lender that the appraiser is to call the listing agent for access.
Be early, be friendly, provide comps with a list of items that would have value.
Learn what gives value in an appraisal. That's important.
Trying to get an adjustment after the fact is just closing the barn door. . . . .
Good luck. You need to review as many appraisals as you can get your hands on and study comps. Learn what features give value, like square feet, remodelled kitchens (not new appliances), learn that maintenance (new roof) has no value but might help sell.
Take some appraisal courses.