Our real estate agent mentioned to the appraiser (prior to the appraisal) that their was a backup offer 'well above asking'. She also mentioned that there had been a number of offers that exceeded asking price.
She has mentioned this a few times to me now in an effort to show she did her part to make sure the property appraised, however, I feel it borders on unethical. I thought the point of an appraisal was supposed to be completed by an independent, third party and she is muddying the waters by sharing information about other offers.
As the buyer who requires financing, I appreciate that in certain respects it is in my best interest if it appraises at asking, but I would also like an accurate figure that is not influenced.
Is it customary or legitimate for a realtor to share information about other offers with the appraiser prior to appraisal?
This is one of your agents most important jobs. Not only should they tell the appraiser, they should be providing copies of all the offers to the appraiser.
If the value is well above your purchase price you are unlikely to get a True appraisal number. Appraisers will often appraise just above the contract price in this case.....just butt covering due to past appraisal issues.
Hi @Henley H. I agree the agents do sometimes provide feedback information in regards to offers and sales; however the appraiser should always remain unbiased and collect their own data for appraising regardless of what the Realtor says. The value should be determined by comps that they deem comparable and the adjustments that are done that reflect a true comparison between the subject and the comps. So whatever is being said by the Realtor or anyone else for that matter should be supported by the market and Realtors aren't the only ones in an appraisers ears. The appraiser just considers that as part of the phase of collecting data. So if the appraiser is ethical the information doesn't influence them one way or the other unless it is supported by the overall market.