Feedback Requested: Appraisals and your listings - do you pre-appraise?

By
Real Estate Agent with Account Exectutive, Mercury Network - a la mode

Hello fellow 'Rainer's!

I was recently asked to write an article for our quarterly publication, The Appraisal Press.  As you may or may not know, a la mode started as a desktop software publisher for real estate appraisers 23 years ago.  To this day, over 60% of the appraisers in the United States use the number one desktop appraisal software, WinTOTAL.

Anyway, as you have probably experienced - many home purchases have either fallen through or have been on the verge of falling through because of the final value of an appraisal.  I was asked to write an article educating appraisers on how they can go about getting appraial orders before a home is listed to help support not only the listing price, but help build their business beyond waiting to receive an order from a lender or AMC.

So I ask my fellow 'Rainers a two part question: 

  • "Do you suggest getting an appraisal before listing a home"

    and/or

  • "What could appraisers do to get agents to suggest getting an appraisal before listing a home"

I'm looking for any and all suggestions as well as your view about getting an appraisal -- good idea?  bad idea?  Thank you in advance to all who reply.  I know this will be a great article that could help both sides of the real estate transaction.

Comments (6)

Patricia Aulson
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH
Realtor - Portsmouth NH Homes-Hampton NH Homes

I think it's an ok thing to do if your seller wants to have a formal appraisal.  The bank that lends a prospective buyer will have an appraisal done by "their appraise" and go by that one. However if there is a huge difference then you can suggest that the lender take a look at the one the seller has had done and see if you can work out a fair compromise. Banks/lenders typically use or go with a conservative appraisal of  course.

Good Luck!

Regards,

Patricia Aulson/Portsmouth NH Real Estate

Jun 15, 2009 10:02 AM
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

Eric, I don't recommend they get an appraisal unless the property is out of the norm for the area.  Thankfully we have enough competitive and comparable sales within a 90 day timeline that we can come awfully darned close to estimated value without the sellers paying for an appraisal.

Now, if the sellers decide their home is worth much more than what data tells us, then I can't help them :-)

Jun 15, 2009 10:13 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I recommend an appraisal if the sellers think the price is a lot more that what I suggest .

Jun 15, 2009 10:27 AM
Daniel J. Hunter
REALTOR® - New Port Richey, FL

aside from the unique property issue raised above, I can not think of a reason why I would recommend it.   And if they disputed my CMA price, I doubt I would even take the listing.  Part of the job of a Realtor is to Properly price a Piece of property to sell.   Now, as I typed this, one thing i might use an appraiser for, is High End residences.  And I would pay for it, not my client.  I look forward to other comments

Jun 15, 2009 11:02 AM
Eric Richardson
Account Exectutive, Mercury Network - a la mode - Edmond, OK

Thank you to everyone that replied.  This has really helped clear up a lot in how agents approach their listings.  I personally recommend getting an appraisal but I think that's because of my experience on the appraisal side of the business.  Thank you again, it was very informative!

Jun 17, 2009 03:32 AM
Steve Warrene
Your Town Realty - Lower Burrell, PA
Pittsburgh Real Estate Investment Specialists

I feel that we as professionals know the market well enough to let the sellers know what its worth.  But if the seller(s) are set on a higher price then I think, its a great idea to have an appraisal done.  There are other realtor's out there that will tell the seller(s) that it will sell for the sellers price.  When that happens I tell them to get an appraisal before working with another Realtor.  If the appraisal comes in at my recommended price they list with me.. as I proved I know the market.  If the price comes in higher then they can list with someone else that recommends a higher price than mine.... But the sellers are NOT to tell the other Realtor(s) that they got an appraisal.  Let them have the Realtor what they think it will sell for.  I generally always get the listing due to knowing the local markets.

Aug 14, 2011 09:26 AM