Rude to give an appraiser a list of comps beforehand?

4 Replies

I am doing a lot of BRRR projects right now, and have been consistently dealing with extremely low appraisals. Low to the point of laughter when I show them to other agents. The subject property is always brand new remodel with nice material, and the appraisers keep picking the bottom of the barrel comps that haven't been updated in 30 years, while passing over perfectly reasonable remodeled comps right there on the list.

I go back to them after the appraisal and try to get them into include more accurate comps, but they usually just add one or two comps on and keep their crappy ones. I have an appraisal today and had the thought that maybe I could email them a list of potential comps that I have personally been in that I think are good matches. However, I don't want to be condescending--I could see that annoying them, a customer trying to tell them how to do their job. 

Anyone think this is a good/bad idea?

James Marshall

An appraiser with the right attitude should accept you pointing out the additional comps. They still get to decide what to include in their report.

I’ve walked a property after rehab with the appraiser and pointed out all of the major improvements that were made. Some improvements can be less obvious like mechanicals, electrical and plumbing.

@James Marshall

It depends on how you present it.  When I was actively selling in NYC I always met the appraiser at the property, gave them my card and three comps, plus a list of any particular improvements I wanted to point out.  

I never had an appraiser be anything but courteous in response.  Let them know you are available if they have any questions.  Don't crowd or hover them.  Smile and wait patiently until they have finished.  

Lastly, keep in mind that most appraisers will try to stretch up to a sales price number, but may be more conservative with a refi.

@James Marshall I've never had an appraiser have an issue with me suggesting comps and I've even had one appraiser ask me for the comps I had in mind. They can't know every possible area and house so, as long as your comps are reasonable, you're helping them out and yourself as well.

Update: I politely provided 4-5 comps for each of my last two BRRR appraisals this month. Both appraisals came in above where I needed. Not sure if that's what made the difference, but I will definitely keep doing it from now on!