I have found that it is all in how you approach the appraiser.
Always try to come from from a perspective of helping them and providing value/assistance. Never come from the perspective that you are there to tell them what the property is worth based on what is occurring in the market... Appraisers hate it when people (especially agents) tell them how to do their job, and I don't blame them!
As Frank mentioned, you will occasionally get an appraiser that is having a bad day. You can't do much about that.
As an agent, I always meet the appraiser at the property for any property that I am listing.
The VP of Appraisal Operations for Cherry Creek Mortgage gave me a great strategy of what to give an appraiser (see below). This strategy works great if you are in a market that is appreciating quickly, and you are dealing with properties that are having a tough time appraising. You could also adjust the strategy slightly to work well for a refinance. I have found a lot of success with this strategy, and most appraisers are thankful for taking some of the work off of their shoulders...
Before the Appraisal
After time the appraisal is set up. Ask the following questions:
- Do you have access to our local MLS?
- How many times have you appraised in this area over the past two years?
(This proves geographic competence)
If the appraiser is not familiar with the area call the bank and tell them the appraiser is not geographically competent, require an appraiser that knows/has worked in the area. Have the lender cancel and reassign.
What to Give to an Appraiser
1. Contract (write sales price in bright green color pen across front)
2. Listing brochure (highlight amenities surrounding property)
3. List of all property updates, completion dates and costs (past 5 years, total cost down to the penny with receipts and list of updates)
4. The sketch if property was measured before listing
5. County assessor records
6. Listing history (documenting multiple offers received, DOM, previously under contract, etc.)
7. 1004MC form obtained from MLS listing service
8. Comparable properties to support sales price
- Listed, pending, sold. (It’s more important to provide comps that don't work for the property, than the ones that do)
- Green Star on good comps
- Red X on bad comps with quick explanation why to the appraiser. "To many cats, smell”, “Full remodel”, etc…
"Bank owned" I know that you can not use them because they do not meet the definition of market value as it’s not a true arms length transaction…
- Call agents and find out the details on properties and why they sold for what they did so you can include these reasons in your quick explanations.
Use the list to tell the appraiser the top 20 things you need to say in a quick 2 minute conversation.
When leaving "would you please give me the same consideration that VA appraises are required to give and enforce tidewater, if you are not meeting values"
- This gives you 48 hours to supply additional information to support value.
- Appraiser cannot tell you value or comparable properties that they are using.
I hope you all find this useful... I apologize about the lengthy post!
