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
