Appraisals - The "Unknown" Factor in Rising Tucson Real Estate Prices
Sitting at weekly staff meetings at my Long Realty Office in Dove Mountain, I'm well aware of the challenges of getting homes to appraise during Arizona real estate transactions. I'm not the only one wondering what the outcome will be.
On one particular listing of mine in SW Tucson, two different transactions on the same property afforded me a glimpse into the wide, wild world of the Tucson Real Estate Appraisal.
A quick bit of background on the Tucson Real Estate market right now - inventory is low, prices are slowly rising, and some pocket neighborhoods are experiencing multiple bids, and accepted offers in their first days on the market.
So, back to the SW Listing. It was a real estate flip, and thus needed two appraisals in order to satisfy the lender underwriting conditions. Appraisal 1: 109K (same as offer/contract price) Appraisal 2: 105K (two weeks later)
The buyer was eventually declined the loan due to income factors, and the home went back on the market. A new offer came almost immediately, but four months had passed since the first appraisal. A new one was ordered. Remember, we have a low inventory, fast-selling, rising market value here in Tucson...
The buyer, knowing the Tucson market, had a offer price of $115,000. He wanted to be sure to beat out any simultaneous offers. Appraisal 3: 101K.
Handling appraisal negotiations between seller and buyer is another subject, for another blog posting.
Today, let's look at how to "help" an appraiser in valuing your property. These are just some of the things I do, and my opinion only. I'd love to hear your own ideas and hints as well in the comment section below.
What do we take away from this experience shared above? How can one prepare for an appraisal, without "interfering or trying to unduly influence" the appraiser?
Well, for one, really come up with some LIKE properties for comps. Do your research and provide both ACTIVE and SOLD listings, especially if there are trends affecting pricing going on.
Have a past appraisal? With the seller's permission, you can share this information if you think it's pertinent and helpful.
Compile a list of improvements, additions, enhancements your seller has made. List values, even if only approximate. Be fair and honest...the appraiser knows the values of things.
Write a nice, brief cover letter thanking the appraiser for the dilligence and time. Highlight what you feel is most important about the property. Enclose your card, and give the the appraiser at the end of his/her assignment.
Today's appraiser and I found a little common ground, she was receptive to my assistance in sharing the booklet we'd prepared, and we briefly touched on a little background information. It was a very professional, and positive experience. I think a little kindness goes a long way, and if one of my future sellers is looking for an appraiser - she'll come to mind.
Are you looking to buy or sell a home in Tucson, AZ and want more information on the appraisal process?
I'm happy to help and a phone call, text, or email away.