Can someone teach me about "Pre appraisal"?

[J Grant]

Being frfiendly is fine, we all have different personalities. I have no problem valuing on th ehigh end if that is the value.

However, experience has taught me that if I let the party know the value may or may not be what they want or expect, I have very few problems when they get the report.

But if the party is led to expect, or it is implied in conversation that they will get X value and then the appraisal is different, they can get upset, thinking you broke a promise, were supposed to be on their side, and so on. While we think we are educating them about the market, they are hearing what they want to hear - and can take an innocent comment out of context.

 

[Tom D]

Now being friendly to the owner, or not, is up to someone's business plan. Asking the realtor or owner what they would sell it for, is in what way letting the party know any value before i did the appraisal, and having just explained the appraisal process to them, or the marketability of the over improvement that they love. I don't disagree with you at all j grant, i just present my business plan that existed before hvcc and continues to the present.

Oh wait, speaking of situational ethics of expecting a value, i assume you don't do sales because there is an agreement of sale with a determined value that will influence your weak mind.

My experience is that most homes owners are pretty accurate on their values, which has always been a surprise. However, i have to explain to the ones who found the highest sale in the area and say theirs is worth more. Then again, it's just explaining how appraisal works. Normal civilians, and most realtors, have no idea how appraisals have to be done.

But j grant, i will try my best not to have my weak appraisal mind be influenced by evil owners and realtors. If i do, i will remember your posts to buck me up.

 

[alebrewer]

I like the AI form(s). The 'steps' taken (i.e. the SOW) will most likely be very similar to your typical practice. Google 'appraisal engagement letter' to get an idea of what kind of format you'd like to use to formally engage the client. Make sure you're both in agreement WRT the SOW - interior inspection? GLA measurements? Extent of photography? Physically driving comps? Approaches to be used to develop your opinion of value? Etc. To J's point - I would require at least half up front. Keep the engagement letter in the work-file, as well as copies of any reports you deliver to the client. These assignments can be a lot of fun, as you're usually giving potential sellers insight into what it is we actually do. To Tom's point, though, I kind of like to have an idea of what the seller thinks their house is worth as well - it helps me tailor the report to make it more meaningful to them.

 

[togatour]

Another thing to consider....about 90% of pre-listing work that I do is initiated by the Listing agent. However, I always try, and always succeed, to suggest that the agent have the seller/ homeowner contact me and engage me. Yes, that makes the seller my client and responsible for payment. The reason this has always worked for me, and the agent and seller, is that I want the seller to know I am providing an unbiased opinion of value. There is likely a reason that the seller and agent need an appraisal and that reason is that they are far apart on value. There could be other reasons but that is the most common. The last thing you want is for the seller to think you are just agreeing with the agent. Make sure you detail exactly what you will be providing and put it in an engagement letter.

Sometimes the agent will reimburse the seller for the cost of the appraisal at settlement but that is between them.

 

[alebrewer]

here is likely a reason that the seller and agent need an appraisal and that reason is that they are far apart on value.

Or that the property is atypical and the Realtor and seller really don't know.

 

[J Grant]

Now being friendly to the owner, or not, is up to someone's business plan. Asking the realtor or owner what they would sell it for, is in what way letting the party know any value before i did the appraisal, and having just explained the appraisal process to them, or the marketability of the over improvement that they love. I don't disagree with you at all j grant, i just present my business plan that existed before hvcc and continues to the present.

Oh wait, speaking of situational ethics of expecting a value, i assume you don't do sales because there is an agreement of sale with a determined value that will influence your weak mind.

My experience is that most homes owners are pretty accurate on their values, which has always been a surprise. However, i have to explain to the ones who found the highest sale in the area and say theirs is worth more. Then again, it's just explaining how appraisal works. Normal civilians, and most realtors, have no idea how appraisals have to be done.

But j grant, i will try my best not to have my weak appraisal mind be influenced by evil owners and realtors. If i do, i will remember your posts to buck me up.

It is not about a weak mind subject to influence - it is that with these long chats, they now expect you to be on their side and opine on the opinion they gave you.

I do purchase appraisals - the SC exists and IMO we should have it -and it may or may not be the MV but it can be an indicator-