How to Communicate Effectively with a Real Estate Appraiser in the Appraisal Process

If you are buying or selling a property, or refinancing your home, you may encounter a real estate appraiser who will appraise your property based on its condition, features, location, and market trends and provide an appraisal valuation. The appraisal process is important for homeowners, buyers and sellers. Appraisals can affect the financing, the negotiation of the purchase price, and ultimately the closing of the sale or the loan. Therefore, it is essential to communicate effectively with the appraiser and provide them with accurate and relevant information that can help them perform their job.

Here are some tips on how to communicate effectively with a real estate appraiser when obtaining an appraisal:

• Be clear about your intent: Whether you are the homeowner, buyer, seller, or agent, you should inform the appraiser of the purpose of the appraisal and the type of report you need. Appraisals are needed for a range of reasons, such as a property purchase, or a refinance, divorces, estate settlements, or tax purposes, etc. You should also disclose any special circumstances or contingencies that may affect the value of the property, such as repairs, renovations, easements, or encroachments. This will help the appraiser to select the appropriate data, the approaches, and the methods utilized in the appraisal, and to comply with the relevant standards and regulations. If the property is a new construction building, the appraiser may use the Cost Approach, which estimates the value of a property based on the cost of replacing it with a similar one. If you are selling your property, the appraiser may use the Sales Comparison Approach, which compares the property with similar ones that have recently sold in the area. If the property has rent potential, the appraiser may use the Income Approach, which calculates the value of the property based on the income it can generate. For more in-depth information about the different approaches, please visit our website www.bostonappraisal.com; we have blogs and videos explaining them!
• Be a resource: Good appraisals rely on good information, so you should provide the appraiser with any relevant documentation or data that can help determine the value of the property. For example, you can provide a copy of the sales contract, a list of recent improvements and their costs, a survey or plat map, a floor plan, deeds, a title report, or a homeowner association’s agreement. You can also point out any unique or relevant features of the property, such as a view, a pool, a fireplace, or a solar panel system. However, you should not try to influence the appraiser’s opinion or pressure them to come up with a certain value. Bias and undue influence are serious violations of Appraiser Independence Requirements and the Uniform Standards of Professional Appraisal Practice, both on the part of the appraisers and on the part of the clients! The appraiser will use the information provided as a reference, but they will also conduct their own research and inspection of the property and verify the accuracy and validity of all the data. They will also consider other factors that may affect the value of the property, such as the market conditions, the supply and demand, the location and neighborhood, zoning or environmental issues, to name a few.
• Being educated about the appraisal process and its implications can prepare you for any possible outcomes: Whether you are an agent, homeowner or a buyer, knowing about a lender’s appraisal process is invaluable. Communicating with all the parties involved, such as the lender and the appraiser, can oftentimes address any issues that might arise beforehand. Some of the factors that you should consider are:
  • The Appraisal Management Company (AMC): An AMC is a third-party entity that acts as a middleman between the lender and the appraiser, and manages the appraisal process. Some lenders use AMCs to ensure compliance with the Home Valuation Code of Conduct (HVCC), which is a set of rules that aim to prevent conflicts of interest and undue influence in the appraisal process. However, AMCs can also have drawbacks, such as high fees, lack of communication, poor quality control, and a lack of local knowledge. Therefore, you should research an  AMC’s reputation, experience, and performance when working with them.
  • The appraiser’s qualifications: You should check an appraiser’s credentials, such as their license and certification, education, training, and membership in professional organizations. You should also verify their experience and expertise in the type and location of the property you are dealing with. You should avoid appraisers who are unfamiliar with the local market, or who have a history of complaints or disciplinary actions. You should also ask the lender or the AMC how they select and assign appraisers, and whether they have a panel of preferred or approved appraisers.
  • The appraisal fee: You should inquire about the appraisal fee, and who is responsible for paying it. The appraisal fee may vary depending on the type, size, complexity, and location of the property, as well as the scope, method, and report of the appraisal. The appraisal fee may also be influenced by the market demand, the competition, and the regulations. You should compare the appraisal fee with the average or customary fees in the area, and make sure it is reasonable and fair. You should also be aware of any additional charges or expenses that may arise during the appraisal process, such as travel, inspection, research, or review fees.
  • The appraisal turnaround time: You should ask the lender or the AMC how long it will take for the appraiser to complete and deliver the appraisal report. The appraisal turnaround time may depend on the availability, workload, and efficiency of the appraiser, as well as the complexity and urgency of the appraisal. The appraisal turnaround time may also be affected by external reasons such the weather, the season, the holidays, etc. You should plan ahead and schedule the appraisal as early as possible and allow enough time for the appraisal process to avoid delays or complications. You should also follow up with the lender or the AMC regularly, and monitor the status and progress of the appraisal.
• Always be professional and courteous: Communication is a two-way street, so you should always be respectful and polite when interacting with an appraiser. You should also be responsive and cooperative and answer any questions or requests the appraiser may have. Provide the appraiser with any feedback or suggestions that can improve their performance. 

The appraiser’s role and contribution to real estate transactions is crucial, and you should recognize their value and expertise. Building a positive and productive relationship with the appraiser fosters reliability, trust, and respect.

By following these tips, you can communicate effectively with a real estate appraiser in the appraisal process and ensure a smooth and successful transaction. Visit www.bostonappraisal.com for more videos and blogs! Should you require an appraisal, don’t hesitate to contact us!