Appraisal speaker ask the appraiser questions

[DWiley]

Having done many such engagements over the years, the most common question I would get was, "When homes are selling at $X/SF, why do appraisers only adjust at $Y/SF?"
Years ago I did a whole seminar on that topic for our local association.

 

[RCA]

Having done many such engagements over the years, the most common question I would get was, "When homes are selling at $X/SF, why do appraisers only adjust at $Y/SF?"
Years ago I did a whole seminar on that topic for our local association.

That's an easy one. But, btw, most of the time around this area, the appraisers are wrong as well: Three is no single "$Y/SF" for most homes. - It is a non-linear value that varies with the SF range. GSEs can't handle that of course.

They need to be lectured as well.

E.g., the subject has 2,250sf. For the market area, the first 1000sf are valued at $500/sf, the next 1000sf are valued at $400/sf, the next 500sf at $350/sf, the last 1500sf at $250/sf. One of the comps has 2,500sf, one has 1,900 sf, one has 2,100sf. What are the adjustments? Let's see who can get the math right.

 

[shrubberyvaluation]

I am doing an "ask the appraiser" ZOOM call with 150 realtors, I have done speaking before. Does anyone have a list of questions realtors and or loan agents might ask?

What do we do when a house underappraises. How do we ensure the appraiser does not underappraise the house.

 

[Mark K]

Tell them up front that there's no time for long-winded war stories so please ask specific questions and you'll get....

1. How much does a pool add to the home value?
2. How much does a new kitchen/bath/roof/etc. add to the value?
3. Why does the appraiser need a copy of the purchase agreement?
4. What is USPAP?
5. Why won't appraisers return my call?
6. Why won't appraisers give me a copy of the report?
7. How do you adjust for age/condition/quality differences? They'll ask because their listings are always newer/better shape/higher quality than others.
8. Why don't appraisers count lower levels as living area sq. ft.?
9. How much is an extra garage space worth?
10. My listing had a nice yard barn. Why isn't it worth more than the neighbor's house without same?
11. How much do you add for a fireplace/deck/hot tub?
12. Do power lines in the back yard affect the value? Same for airport or freeway noise.
13. What is an AMC? And why do you charge $800 for an appraisal. You may have to explain that the AMCs charge $800 and you only get part of that.
14. Etc.

Have brief (as possible) answers ready for these types of questions. Don't lecture them; you'll lose them. Yes, I've done it before. The agents have always been grateful.

 

[BRCJR]

Right good suggestions.

If anyone has a list of questions that would likely come up - please provide them.

I have a few items I know will come up.
One which I won't bring up unless someone else does is
that there are many different ways to say

"the appraiser didn't come in value"

- Well we knew there were no comparables supportive of the sales price!
- We sold it for too much; due to overbidding / multiple offers!
- Well we did flat-out lie about the square footage!
- We should have taken the all-cash deal!

"the appraiser didn't come in value"

Lenders I work with are taught, in such situations, to say, "The Appraisal Report indicated an opinion of value less than we anticipated."

They are to never indicate the Appraiser did or did not do something. It is always the report did or did not do something.

 

[RCA]

"the appraiser didn't come in value"

Lenders I work with are taught, in such situations, to say, "The Appraisal Report indicated an opinion of value less than we anticipated."

They are to never indicate the Appraiser did or did not do something. It is always the report did or did not do something.

That's a little more polite, a little more direct, a little more exact - but just as devastating. It means in most cases the appraiser won't get any more orders, - or is at least on that path.

( However, to say that "the appraiser didn't come in at value" can legitimately only mean that the appraisal report in question indicated a value that was implicitly less than contract price communicated to the appraiser for a sale transaction. Otherwise, there shouldn't be any expected value communicated to the appraiser - and if there were he/she should ignore it.

The appraiser does not read minds and could not possibly know what the lender really anticipated - only what the lender possibly told him they expected - which might be different.

Lenders are free to do their own analysis and come to their own conclusions regarding market value, but without a legitimate appraisal report they are not in good standing to object to the conclusion of the report in question. They could get a second [appraiser] opinion of course. )

 

[Elliott]

Having done many such engagements over the years, the most common question I would get was, "When homes are selling at $X/SF, why do appraisers only adjust at $Y/SF?"
Years ago I did a whole seminar on that topic for our local association.

How did you answer the question?

 

[Fernando]

When I was measuring today, I was concentrating on my numbers.
Agent said Hi behind me but I ignored her. Sorry to be rude but I had to concentrate.
So tell your agents that appraiser may seem rude but do not bother me while I'm concentrating.

 

[Dublin ohio]

When I was measuring today, I was concentrating on my numbers.
Agent said Hi behind me but I ignored her. Sorry to be rude but I had to concentrate.
So tell your agents that appraiser may seem rude but do not bother me while I'm concentrating.

Some of us can walk and chew gum at the same time.

 

[Fernando]

Some of us can walk and chew gum at the same time.

Some can't. I have to focus.