4 things you should tell the home appraiser when selling

In our last post we talked about Chicago’s Near South Side being at an all time high in 2 years and it was a very good time to sell.

This post talks about the 4 things you should tell the home appraiser when selling your home.Chicago AppraisalWhen a home for sale goes under contract a real estate appraiser is contracted by the buyer’s lender to develop an opinion of market value.  Part of this process includes analyzing all agreements of sale, options and current listings of the property.

Let’s dive right into the 4 things you should tell the home appraiser when selling your home:

  1. How was the list price developed?

  Wrong way to answer this question is being vague. For example I often hear we used area         sales or listings.

  Right way to answer this question would be to provide the appraiser with specific sales and       listings or a copy of the comparative market analysis (CMA) report that you developed.

  1. How many showings did the property have?

  Wrong way to answer: We had a lot of showings.

  Right way to answer: We had 15 showings or whatever the number might be.

  1. Were there multiple offers?

  Wrong way to answer: We had several offers.

  Right way to answer: We have 2 back up offers.

  1. How was this contract selected over the others?

  Wrong way to answer: We felt it was the best offer overall.

  Right way to answer: It was the highest contract price or it was a cash buyer that is able to         close in 2 weeks or they had the highest deposit, etc.

These 4 questions is really a way to start the conversation of how we got to the contract price. Being vague here adds zero value to the process.  The detailed answers provide a lot of insight when coupled with the appraiser’s analysis of market trends.

Realtors if you’re not meeting the appraiser for the appraisal inspection you are missing your big chance to provide some input that can help make the sale go much smoother.

Watch this video and see what one of Chicago’s top commercial brokers has to say.  As an appraiser I could not agree more.

Tips on getting a property to appraise out when the sales price is above list price.

Posted by ROC Realty Group – a division of @properties Commercial on Saturday, June 4, 2016

 

Do you want to know what is happening in your market? Let me know in the comments below.

Did I leave anything out or do you want to join the conversation? Let me know in the comments below.

Providing real estate appraisal services since 1999 with an array of experience in property appraisals that includes Divorce, Estate, Bankruptcy, Tax Appeals, Pre-Listings, Pre-Purchase, FSBO and more.

Our coverage area includes Chicago and the bordering suburbs.

For more information call us today at 773-800-0269.

Thanks for reading,

John Tsiaousis

Email This Post Email This Post

Submit your review
1
2
3
4
5
Submit
     
Cancel

Create your own review

Average rating:  
 0 reviews
Social tagging: > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > >

10 Responses to 4 things you should tell the home appraiser when selling

  1. Cassie says:

    Thanks ..good advice
    I also bring a list of improvements with dates and amounts…does that affect the appraiser’s opinion of the home??

    btw..an Interesting observation…not fact…we see people make high offers on homes that look nice inside but homes that have new roofs, siding, Hvac…(the less glamourous yet perhaps more valuable) doesn’t seem to affect price/offers…how do appraisers value those
    less glamourous features of the home?

    Thanks
    Cassie

    • That’s great Cassie!, I love it when I when I get a list of improvements. Sometimes there can be improvements that are not as apparent as others so having the list is always a benefit. Here is a short video we put together for how to prepare for an appraiser which includes putting a list of improvements together: https://youtu.be/v0LUeKheL1Q

      Appraisers follow the market, if the market pays more for remodeled kitchens & baths versus roofs, siding, hvac, etc then we value those like the market does. Generally in my experience they command similar prices. Thanks John

  2. Casey Lyon says:

    It amazes me how many realtors and owners just leave the appraisal process totally up to the appraiser without providing relevant and helpful information. It is like appraisal roulette.

  3. Mike Turner says:

    Good stuff John Tsiaousis ! As a fellow appraiser I know I appreciate a Realtor who truly understands our role in the mortgage process and helps us help them!

  4. John, great post, I will try to add to the conversation. I like what Cassie added. Also, some other things that I would add to the list, but they don’t always apply, are explain any failed sales of the property, tell what features set this property apart from similarly priced competition (might not always be apparent to the appraiser), provide permit information on changes to the property, and if it is a condo provide contacts information for the HOA.

  5. Roy Meyer says:

    Great post John. Appreciate all the great information you’ve been sharing with your blog. No wonder you’re one of the leading appraisers in the greater Chicago area.

Leave a Reply