What does an appraiser do?

Is a For Sale By Owner (FSBO) prepared to understand and or deal with an appraiser, and are sellers aware of the challenges they may face by selling their home on their own.

This might seem beyond basic, but sellers might have preconceived notions, correct or incorrect about an appraiser’s role.

The appraiser, when hired by a mortgagte lender to conduct an appraisal for purposes of making the loan, is essentially the eyes and ears of the bank.

They are supposed to be unbiased and objective, and they will attempt to validate the contract sales price of the property (known as the “subject property”) for the lender making the loan.

This means they will do a physical visit to the property to measure the heated and cooled living space, take pictures and do a visual inspection of both the inside and outside with respect to lot, location view, etc.

Their walkthrough and documentation of the property will serve as the basis for their research to find three to six active, under contract and sold comparable sales that are in the immediate neighborhood as close to the subject property as possible.

But I’ve heard many a seller (and buyer) think they were some sort of inspector. Appraisers will not inspect or check any elements in the house, and they will not walk on the roof. If they observe something of concern, they will note it on the appraisal, such as a stain on the ceiling, tree limb on a roof or potentially a leaning fence.

An appraiser holds a state issued license based on completing coursework and passing exams to become licensed.

Depending on the state, they must work under a more experienced appraiser for a designated length of time before they can go completely on their own. There are different levels of appraisers based on their experience levels.

Things that could be noted also depends on the kind of loan being done. If the loan is Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA), they will closely scrutinize these kinds of things compared to a conventional mortgage.

2. What information should an appraiser have?

The appraiser will need an MLS sheet, tax record, any floor plan or survey documents as well as a list of improvements and upgrades that have been done to the home.

As your listing agent, I have the expertise to provide all of this to the appraiser before their visit. The more information the better. The goal is to make it as easy for the appraiser as possible.

They are typically running from appointment to appointment each day and inside numerous properties, and this helps make sure they have a handy reference and won’t omit anything.

Author: danswingblog

Dan has celebrated over 19 years as a full-time Realtor. Successfully listed and sold Luxury homes, diversified real estate portfolios, Advises and assists clients with challenging liquidations and purchases. Not uncommon to be working with foreign nationals, buyers that leverage the Sterling, Euro, and similar currency. Dan welcomes the Global community, with friends in many Nations. He brings a reputation for Integrity, Expertise, and Focus. Our customers deserve the best. Currently provides Residential and Commercial B.P.O.'s, Broker Price Opinions, B.O.V's, Broker Opinion of Value to many lenders. Manage and Sells R.E.O., Real Estate Owned properties, distressed properties! Evaluate and negotiate solutions for sellers and lenders. Developed, operated and sold a Florida "AWARD WINNING" Ad Agency! 2010 & 11 Commercial Agent of the year. RE/MAX Paramount Properties. Relocated to Tampa in 2012, enjoyed retirement for 6 months. Saw unethical practices by some Realtors and choose to reverberate our profession in the Tampa area. In four years built his business to as many as four (4) transactions monthly. Mortgage brokers were calling Dan a Superstar in Real Estate. Dan and his wife relocated to North East Florida, to the community of Nocatee. Currently focusing on 55 and older communities and Luxury Real Estate. Successfully closed on many extremely challenging foreclosures, and Short Sale. Coached and participated in Commercial and Multi-Income Family REO's in the past six years. Elected to the Auburndale City Commission in 1986-88. Created and served as 1st Redevelopment Chair in 1988 & 89 personally put in place all the elements for the Auburndale CRA. 1990 City Commission refused to give a full vote of confidence. After a 5 year journey to personally raise funding, extensive research and study for the CRA district perimeters, and stunned with the Commissions doubt. Positioned himself to run for office again, was re-elected to Auburndale Commission, to serve 1991-93 to full fill the CRA master plan! Active with the Central Florida Development Council from conception in 1985 and sat on the board periodically for the past 25 years representing municipalities and private investors. The positions Dan held from 1986 through 1993 enabled him to have a complete workable understanding of the State of Florida Comprehensive Plan for Future Land Use, and the benefits of intergovernmental agreements, utility franchise expansions, and public/private partnerships! Specialties: Assets recovery & receivership, Real Estate Portfolio's, REO & Short Sale of Residential and Commercial negotiations, marketing consultant, public relations, and Broker Price Opinions for residential and commercial lenders.

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