ReZamp Real Estate: 5 Easy Steps to Get Your House to Appraise

Friday, October 10, 2014

5 Easy Steps to Get Your House to Appraise

Appraisals can kill your deal and cost you thousands of dollars.  This article will help you avoid a low appraisal!

It is true that you cannot pick your appraiser. Appraisers are supposed to be independent third parties to the transaction. Not all appraisers or lenders are created equal though. Lenders can chose their appraisal management companies which in turn chose the appraiser.

Their are aggressive and conservative appraisal management companies.  It is your job to find out which lenders use the aggressive appraisal companies.

Here are some quick tips:

1. Use a Lender you trust 
Yes, I know you cannot pick the appraiser or the buyers lender, however you can reject/counter offers based on a buyers lender. Lenders are not a protected class. It is not a coincidence that investors have their favorite lenders and provide incentives to use them. Get creative and offer incentives for buyers to use your lender. This is much easier in a sellers market vs. a buyers market. If you cannot get them to switch, then the tips below will still help.

2. Make the appraiser call you. 
Change the MLS listing to state that all showings must call the listing agent first before entering. The reason for this is so you can get their phone number and email. Once you get their email send them remodel costs and comparable sales (comps) for the area. More on this later.

3. Let the appraiser do their job 
Don't get in their way and don't make their job harder. Make sure they can access all areas of the home, and have easy access to walk the property. I never even meet the appraiser, I just provide the lockbox code and let them go on their own time.

4. Remodel and Upgrade Costs
Put your remodel costs together into an easy to read and easily printable format. I use Excel, but you can use anything. Just make it easy for the appraiser to see the improvements you have done to the property.

5. Comparable Sales 
I send 3 comparable sales to the appraiser even if they don't request them. This lets them know you've done your homework and know the area well. Some appraisers will ask for them, and some don't. Send them either way. I use ReZamp's built-in CMA function for this, but you can use any method that works best for you.

Thats it!  These five steps will save you thousands of dollars and avoid the dreaded low appraisal.

What tips do you have on getting houses to appraise?

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