How to Be A Partner During the Appraisal Process
Did you know, in 2023, 42% of REALTORS® had a transaction fall through due to an appraisal? According to the
National Association of REALTORS® (NAR’s) Appraisal Survey,
this was most influenced by the ultimate appraised value or use of incorrect comps.
Appraisals can be one of the most nerve-wracking parts of the transaction for REALTORS®, homebuyers and sellers; you want to ensure the value of the home holds up, but you are also putting your trust in another, entirely new party’s hands.
However, as a REALTOR®, you can mitigate some of this stress and be a partner in the appraisal process. As the listing broker, you likely know this property and the neighborhood better than anyone—you can use this knowledge! While attempting to influence the appraisal process is illegal, it may not be widely known that there are acceptable, actionable steps you can take to partner with an appraiser and help inform the outcome of an appraisal.
According to NAR’s Appraisal Survey, about 90% of REALTORS® interact with an appraiser in some capacity, but only about 47% of those REALTORS® say they interact with appraisers by providing additional property information. In fact, “Many of the other comments indicate that the member has not interacted with an appraiser yet, that they only interact with an appraiser when the appraiser requests it, or that they interact only to schedule appointments,” the Appraisal Report states.
So, what can you do as a
partner during the appraisal process?
Reporting Discrimination
If I have evidence of negligence or discrimination, who should I contact?
A: According to Illinois REALTORS®, you should report it to the lender in writing. In addition, the Appraisal Subcommittee, which is a Unites States Federal Government Agency, operates the Appraisal Complaint National Hotline (
refermyappraisalcomplaint.ASC.gov) which can refer the matter to appropriate federal or state authorities to complete an investigation. In Illinois, the Illinois Department of
Financial and Professional Regulation (idfpr.illinois.gov) is the regulatory agency for appraisers. Fair Housing violations can be reported to the United States Department of Housing and Urban Development (
HUD.gov). In Illinois, suspected discrimination can be reported to the Illinois Human Rights Commission (312-814-6269).
How to Be A Partner During the Appraisal Process Did you know, in 2023, 42% of REALTORS® had a transaction fall through due to an appraisal? According to
chicagorealtor.com
...partners
