Avoid A Low Home Appraisal

By
Real Estate Agent with RE/MAX Executive

A house needs to be sold three times when it is on the market. First it needs to be sold to other agents so they will want to show and sell the home. Second it needs to be sold to buyers and lastly to the appraiser. Even if the buyer is willing to pay a certain price for a home they usually need a mortgage. That means it is actually the bank who is buying the home. The bank wants to protect their investment so they do an appraisal. When the appraisal comes back low or as an under-appraisal deals can fall apart.

If you are a seller or a buyer you need to know how to protect yourself from short appraisals? Here are some suggestions from Bankrate.com for buyers and sellers.

If you're a buyer:

-- Tell your lender to find an appraiser who comes from your county, or perhaps a neighboring county.

-- Request that the appraiser have a residential appraiser certification and a professional designation. Examples include the Appraisal Institute's senior residential appraiser, or SRA, or member of the Appraisal Institute, or MAI, designations.

-- Meet the appraiser when he or she inspects the home and share your knowledge of recent short sales and foreclosures that might skew the comps.

"Many appraisers are just pulling up data out of MLS (Multiple Listing Service) or off the deed at the courthouse and not checking it out," Sellers says. "Most good appraisers will appreciate the information."

And yes, you can speak with your appraiser; the prohibition only applies to your lender.

If you're a seller:

--·Get an appraisal before you list a home. Search for a qualified appraiser in your area on the Appraisal Institute website.

-- Use the appraisal to set a realistic listing price for your home.

-- Give a copy of your pre-listing appraisal to the buyer's appraiser. The more professional appraisers will understand that you're just trying to add more data and another perspective.

-- Question a low appraisal. There's always a chance the appraiser or a supervisor will take into account new or overlooked information.

When you are buying a home or selling a home start by working with a seasoned real estate professional who will keep your best interests at heart! I have helped home buyers and sellers for over 25 years. I’ll be there for you throughout the entire process! I can also refer you to reputable mortgage lenders, home inspectors and contractors.

Don’t forget, you can stay on top of Metro West real estate with my FREE monthly newsletter and market updates! The Market Insider report is also free and packed with  useful information.

When you have questions about real estate, contact me first! I will provide thelatest sales data and the market experience you can trust!

John Savignano

MA Real Estate Expert

RE/MAX Executive Realty

508 625-0059

 

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Topic:
Home Selling
Location:
Massachusetts Middlesex County Hopkinton
Groups:
Active Rain Newbies
RE/MAX Active Rain Bloggers
Tags:
home appraisals
real estate advice
home selling tips
hopkinton ma real estate

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Rainer
290,561
Carla Harbert
Full Time REALTOR in Ohio - Brunswick, OH
RE/MAX Omega, Brunswick Ohio

I have only had the unfortunate experience of a low appraisal three times in the past 4 years - I am prepared with reasonable comparables that I hand to the appriaser, even offer to help measure and be of assistance. I do not try to "tell an appriaser what to do" - just provide information and be nice. But facts are facts - a home has to be justifiable in price so the appraiser can stand behind it. I understand.

Nov 09, 2013 10:26 PM #1
Rainmaker
221,215
John Savignano
RE/MAX Executive - Hopkinton, MA
Realtor - Hopkinton and Metrowest MA Real Estate

Agreed Carla, thats what I do as well, just ry to be helpful and offer comps.

John

Nov 09, 2013 10:35 PM #2
Anonymous
Chandler

I somewhat disagree with the first line - as an appraiser the last thing I want a Realtor to do is try and sell me the house! Just give me the facts and help me understand anything about the area that I may not be aware of.

Here's an (LONG) article I wrote on the topic of dealing with low appraisals and how Realtors can work with appraisers to avoid these problems. I called it 12 Tips to Help Realtors Avoid Low Home Appraisals and Skyrocket Closings. I hope you find it useful!

Nov 22, 2013 01:33 AM #3
Rainmaker
221,215
John Savignano
RE/MAX Executive - Hopkinton, MA
Realtor - Hopkinton and Metrowest MA Real Estate

Hey Chandler, 

I guess I wouldn't think of the first line "literally" in the sense that I don't try and "sell" the appraiser. I just try and be helpful and offer comps I believe justify the price, wheteher they are used or not is up to the appraiser. Most I find are happy to have them. I dont know whether they are used or not. I appreciate your input here.

John

Nov 22, 2013 02:01 AM #4
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Rainmaker
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John Savignano

Realtor - Hopkinton and Metrowest MA Real Estate
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