The world of appraising has changed dramatically over the last few years. It has called for new tactics to deal with this aspect of a real estate transaction so that it does not become an obstacle to a successful closing.
When the real estate market took a nose dive, lenders in general and appraisers in particular were blamed for much of the problem. Most of this blame was misplaced (a subject for another time) but the result has been new rules on how appraisers and lenders interact. Lenders have to give appraisal assignments to a pool of appraisers in a random, red-robin fashion and the quality of appraising and responsiveness of appraisers has suffered as a result.
In Denver, we have another complicating factor. Prices have risen over the last year by about 10% on average. Appraisers, having been recently blamed for being too generous with their estimates of values for properties, are understandably reluctant to reflect this trend too quickly.
The combination has created situations where it is hard to get some houses to appraise for prices that buyers are more than willing to pay and which the market seems to support. New tactics are needed.
It is much more important now for appraisers to receive marketing information on a property. The flyers and other marketing materials we use when finding a buyer for a home have many details about the improvements and benefits that a property offers. Getting this in the appraisers hands helps to make sure that he/she has a complete picture of the property.
It also helps to give the appraiser a summary of how the market reacted to a particular property. This is especially helpful when there are a lot of showings in a short period of time and multiple offers on the home – a situation that has not been uncommon over the last year.
Finally, in some situations, it even makes sense for agents to meet the appraiser at the property. Handing them the information described above and answering any questions the appraiser may have can help to get the appraiser to see the true value of the property.
Something is always changing in the real estate realm that presents a new challenge. Appraising is just one example of one of the latest. Proactively responding to the new situations is one way to stay ahead of the game to ensuring success for clients.
(c) Colorado Home Realty