Appraisals may seem like one of those “checklist” items your client’s lender needs to complete in order to close on a home, and in many situations, this is exactly the case. But if you’re a savvy agent, then you know that an appraisal can have quite a great deal of bearing on your client’s loan in terms of equity, deferring mortgage private mortgage insurance, and generally getting more value out of their home.
In some cases, there’s not much you can do to change an appraiser’s mind, but it’s in your interest to add value to your services by stepping up to bat and doing what you can to add value to your listing. Here are some things you should know about appraisals.
Face Time is Good Time
In most cases, you’ll likely never see or hear from an appraiser unless there’s downright bad news to report. Appraisers have a tendency to come and go without leaving as much as a trace that they’ve actually been on a property or adequately appraised it. For this reason, it’s important to make sure that you’re present when the appraiser is on the property if at all possible.
While you should never interfere with the appraiser’s job or try to influence their ultimate decision, you can be available to answer any questions they may have as well as point out any significant remodels or renovations that have been done to the home that may influence the house’s value.
In this case, you can practically give a 30,000-foot showing of the home while taking a back seat to let the appraiser do their job.
Demonstrate Demand
While you’ve been busy entertaining offers, courting clients, and spinning your wheels to be successful in the real estate industry, your listing’s appraiser is likely looking at data-driven facts about the home, the surrounding area, and past and future home values. What they don’t see is that a home that just sold had a significant number of offers or a high number of showings.
Part of where you step in is to provide an appraiser with this information. Data is fact-driven, but intrinsic value and perceived value of the home by others can (and should) be a deciding factor in an appraisal. By providing any information about how many showings you did in the home and how many offers were put on it, you may be able to boost the home’s value in more ways than you thought.
An appraiser’s job is to value the home based on the fair market, but oftentimes they don’t or can’t see how much demand there really is. Showing demand in an otherwise inventory-stricken market can be valuable.
Requirements Vary
Since an appraisal is ordered by the lender, what the appraiser is looking at and looking for will vary significantly based on what mortgage product the buyer is using to purchase the home. For conventional mortgages, an appraiser may literally do a drive-by appraisal without ever stepping foot in the home. For VA loans or FHA loans; however, there are much more stringent requirements.
It’s important to understand just what kind of appraisal has been ordered and what the appraiser will be doing. If at all possible, meet them on the property even if it’s a so-called “drive-by” appraisal. Even a few minutes with the appraiser could make a big difference. If you’re unsure about what mortgage products are available and what they entail, then get in touch with Tidewater Mortgage Services, Inc. today!
