Download this free cheat sheet and find out how to speed up the appraisal process. This is a resource for you!
If the appraiser is on the way, it’s usually because something important is happening. Whether it’s a purchase, refinance, divorce, or just estate planning, it is always preferred that the process be as professional and fast as possible. Being ready for the appraiser can save time. And time is money, after all.
Every transaction has additional costs beyond the direct cost of the transaction itself. Economist have a term for this: Transaction Costs. Transaction costs are the expenses incurred when conducting the transaction itself. For example: closing costs and time spent negotiating are examples of transaction costs for a sale, over and above the purchase price. In financial terms, transaction costs can be paying agent commissions, legal fees, and payments to other intermediaries. Non-financial costs are most often time spent negotiating, time spent sending and doing paperwork, travel time, time spent researching the subject property and the market, etc.
One person can’t control every variable in a real estate transaction. But what can be done to save time during the appraisal process is to be ready for the appraiser. The appraiser often asks very similar questions even when appraising different property types, such as: “What type of property is it?”, “Have there been any recent updates?”, and “Are there any immediate repairs necessary?”. Knowing in advance the types of questions the appraiser will be asking, and having the answers ready, will allow for time to be saved when meeting with the appraiser.
In any transaction, time is of the essence. The appraiser naturally wants to know as much information as possible about the subject property and the market. Use this cheat sheet to get a leg up and save valuable time in the appraisal process.
Loan officers and real estate agents: this short list of questions can serve as your “cheat sheet” for communicating with the appraiser. The knowledge and insight you have about the subject property may impact value! You can quickly fill it out and give it to the appraiser in person or via email. If you would like to download a copy as a Word Document that can edited instead of a PDF, you can find that file on our website by clicking here. Feel free to save a copy to your desktop, and even feel free to send it to other parties to fill out so that you can gain property information from your clients for your own use. Also, you’ll look super professional and save so much time normally spent asking and answering questions via email. Feel free to edit the sheet with additional questions and copy it as much as you like.
This document can be used to address how the market responded to the subject listing, number of offers, etc., and offers the agent an opportunity to provide insight into buyers’ preferences, market trends, or insider knowledge about the subject history or competing properties.
It is okay to talk to the appraiser. Sharing facts and information about the subject property is A-Okay. But please avoid statements that could be construed as attempts to steer value. Be specific about upgrades. For example, instead of saying “remodeled throughout” or “they spent $30,000 on remodel”, unpack what that means about what type of and when renovations have been done.
I hope this is useful to you and your clients. Any questions or ideas? Feel free to contact us. If you are a homeowner, also see our previous newsletter on how to prepare your home for the appraiser’s visit.
