Can someone teach me about "Pre appraisal"?

[gorillakimchi]

Hello, I hope everyone had a wonderful time with their family during Thanksgiving.

Today, I received a phone call from a realtor inquiring about a private appraisal, which he referred to as a "pre-appraisal."

I’ve never done private appraisals before, so I told him I wasn’t able to help at this time.

From what I understand, they likely want to determine a reasonable listing price, but I’m not so sure. Has anyone here done a pre appraisal before?

If it’s for a single family home, should I use the 1004 Form, or is there a specific form designed for this purpose?

Additionally, what should the scope of work include? Is it typically the same as a full appraisal? Inspection, taking photos of comps, and including 4 sales and 2 listings?

Lastly, how are fees determined for private appraisals? Are they similar to the fees for a 1004?

I an sorry for all the questions, but I’m eager to learn more about private appraisals to prepare for similar opportunities in the future.

 

[Dublin ohio]

Pre listing appraisals are just an appraisal. Use a general purpose form not the 1004 URAR. You will have to use a general certification and make sure you state intended use, user etc. Make sure you take into account market conditions because they will be looking for a list price based on current market conditions. As far as sales and listings to use that is up to you. But I would analyze current listings and pendings as they would provide more insight of the current market. I always take photos of everything for my file but typically only include 3 subject photos and the comp photos in the report. My fee is the same as my lender fees

 

[Surf Cat]

It's basically to help the seller determine a listing price from your objective view and analysis of the most similar sales in the market area.

You want to do a thorough analysis of all the features of the property. You want to point out any deferred maintenance to give the seller an opportunity to remedy said defects. I call all the Realtors of the sales that I'm using as they have their finger on the pulse of the market and what the market participants are looking for.

GP form, GP certifications as Dub said. As for the fee, you do a preliminary search to see how hard you're going to have to dig and how much work you're going to have to do. I'm assuming it's a lot since the realtor did not convince the seller that their number was the one to go with.

 

[Tom D]

Use a general restricted form. You can use MLS photos them. You visit, then do your research. I usually charged a little less because it was too easy and the general form doesn't have all that minutia that you really don't need. Build a relationship with the realtor. Sometimes i would just pull out solds. and listings. go over them with the owners, then let the owners decide, if they were the ones who called me. That was a easy cheap fee.
When you go thru the house, talk to the owner's. I would ask them what they thought it was worth. I asked the realtor 1st what they thought the value would be. Then i knew if it was going to be easy, or a little more work. Most realtors appreciated my questions.

 

[J Grant]

First rule of private appraisal work: get paid, upfront, deposit funds and make sure they clear before spending much time on it, I usually collect at the inspection though now with Zelle etc people can pay on the phone (not all want to do that )

Do not use a 1004 form use a GP form. There are no rules about comp photos or if they need be original. Discuss what the client expects - I like to charge if possible a bit more than for a bank because private work can be a PITA but people compete on fees for it as well so make your best quote and if you get it, fine, if not, then nothing lost.

 

[J Grant]

Use a general restricted form. You can use MLS photos them. You visit, then do your research. I usually charged a little less because it was too easy and the general form doesn't have all that minutia that you really don't need. Build a relationship with the realtor. Sometimes i would just pull out solds. and listings. go over them with the owners, then let the owners decide, if they were the ones who called me. That was a easy cheap fee.
When you go thru the house, talk to the owner's. I would ask them what they thought it was worth. I asked the realtor 1st what they thought the value would be. Then i knew if it was going to be easy, or a little more work. Most realtors appreciated my questions.

If the owners are deciding what solds and listings to use, and the realtor is telling you what they think the value would be...what are you doing?

That is the opposite of how I work - I will allow of course a RE agen tor owner give me sales if the initiate it, or ask a RE agent for a comp if it is a very challenging property, otherwise I want them to stay out of it.

 

[Tom D]

J Grant, I pull out the solds and listings that seem similar to the subject. You don't think it's a good idea to know what you are walking into with your value. I've gotten different answers from the realtor as to why i'm needed. I only did the solds and listings sheets a couple of times, I educated owners, made them the expert on the street. From the realtor that i have done appraisals for, i have been pretty accurate with value. When you go thru the house talk to the owners about any negative, or positive things, don't walk around with your nose up in the air. Ever profession can talk to their patient/client to better understand, but some here have no beside manner. I do easy big urban, usually with plenty of comps. So, i speak only from my privileged urban appraiser life.

And you get paid the way i always got paid before hvcc. CAD, cash at door. Never had a problem with that, same day or next day delivery, been paid.

 

[J Grant]

J Grant, I pull out the solds and listings that seem similar to the subject. You don't think it's a good idea to know what you are walking into with your value. I've gotten different answers from the realtor as to why i'm needed. I only did the solds and listings sheets a couple of times, I educated owners, made them the expert on the street. From the realtor that i have done appraisals for, i have been pretty accurate with value. When you go thru the house talk to the owners about any negative, or positive things, don't walk around with your nose up in the air. Ever profession can talk to their patient/client to better understand, but some here have no beside manner. I do easy big urban, usually with plenty of comps. So, i speak only from my privileged urban appraiser life.

And you get paid the way i always got paid before hvcc. CAD, cash at door. Never had a problem with that, same day or next day delivery, been paid.

No. I do not think it is a "good idea to know what we're walking into with a value : How can you now possibly disagree with all the intel they gave you and all the hopes and dreams they now expect you to fulfill by coming in at X $??

Getting information about the property is different than inviting them to talk to you about what they think it is worth. Please stop with bedside manor BS. If you want to make them happy by finding out the value they expect, then at least own it.

These people are not sick and we are not a shrink or a bedside doctor. We don't have to be mean or cold but should be professional.

While it is less critical in a pre-listing appraisal than in divorce or estate work, I tell private clients up front that I will give them a realistic opinion of MV and am not working for any agenda or side - to come in higher or lower than it is worth - are they okay with that? 9 out of 10 say yes. I do not need that 10th person and they did not need me.

 

[J Grant]

I should add that I do very little private work now. At one time, I did a fair amount of it , but I found it interrupted my regular flow, and the people could be a PITA, calling afterward, being a pest.....

I do not have a website and I do not give my card to an agent unless they ask me ( kind of the anti marketer - but thankfully, I am busy with several good lender clients - hope it continues; nothing is certain in this business )
A few RE agents have been terrific over the years and referred me. Some RE agents are truly professional, and they, like anyone else, appreciate that if explained to them, an appraisal may not be what they want to hear - but what they need to hear to sell a property or be taken seriously in a divorce or estate process. For a pre-list, often the case is the property is not selling, or the agent doubts it is worth an overpriced amount an owner expects- sometimes it comes from an out-of-state owner or joint owners fighting about what it should sell for , that kind of thing.

 

[sputnam]

Pre listing appraisals are just an appraisal. Use a general purpose form not the 1004 URAR.

Yep. Non appraisers can be as sloppy as they want to be in referring to appraisal products. Appraisers shouldn't be.