Help Yourself, Your Fellow Realtors & Sellers by Helping Appraisers...Here is How!
When an Appraiser contacts you about your under contract listing, which they may be using as a Comparable Pending Sale in their report, please tell them what that home is under contract for and if any closing costs are being paid. IF your Seller has advised they do not want to disclose that information, the next best thing is providing an approximate percentage off the Listing price without giving the actual sales price.
My understanding is that Realtors CAN disclose this information without violating any laws or regulations, it may be in the fine print of the Sales Contract. This is what I have been told by other Realtors.
Why disclose Sales Price to the Appraiser & what else should you Disclose?
1. It gives the Appraiser the MOST recent market information. This is a very recent indication of what the market is doing and it can help the Appraiser to justify a higher appraised value if the market shows an increase in the market due to this very recent pending sale.
** Many lenders require Appraisers to use Listing and or Pending Sales in their reports along with at least 3 Closed Sales and therefore Appraisers need to analyze the details of those properties just as they need to with Closed Sales.**
2. The Appraiser will typically DEDUCT from the Listing Price of the home in anticipation of the actual Sales price, without Sales price information. (This is BAD if the home is selling at or OVER the listing price).
3. It may be the BEST comparable available to the Appraiser at that time. This may be the perfect comparable which will help to solidify and support a market change adjustment and resulting value for the Subject.
4. Discuss Seller Paid Closing costs so the Appraiser knows if they are typical in the market or if there are some unusual costs being paid for various reasons. Discuss all of them with Appraiser.
5. Discuss any special stipulations or Financing in the Contract. Is personal property included in the Sale? (hopefully not).
6. Discuss if this is a DISTRESS sale and why it may not the best sale to use for various reasons.
7. Discuss if you feel this is a SOLID sale that you fully expect to close and when that proposed sale date is, if it varies from what FMLS/MLS states on proposed closed date.
8. Discuss if this sale was one of many (Multiple Offer Situation). This tells the Appraiser that this price was very competitive and may have even been under the market a bit on listing price.
9. Discuss if the Sales price is OVER listing price and why that was the case? It could mean other things were included (personal property or another adjoining lot or the seller is finishing the basement, etc.)
In summary, please help the Appraiser to help You, All your Fellow Realtors & Sellers by helping the Appraiser with this very critical information. YOU are the only ones with this information when a Sale is Pending...so you can be a big help for all concerned.
Thanks for doing business with us and for all of your past Referrals.
Lanier Appraisal Service