Appraisals

This is one of the major milestones during a transaction for the buyer but also for the seller. How are we preparing our clients for this huge milestone? Are we setting them up to win or are we setting them up for failure? Here are a few things that we should be doing to make sure that we are setting our clients up for success:

  1. Explaining the entire process to our clients. How it is done, who does it, who pays for it

  2. Go over the comps with our clients so that they are informed and know what to expect

  3. Make sure that they understand that the appraisal is a separate contingency and a completely different thing from the inspection.

  4. Always have a full conversation with the appraiser before they go out to the property. Let them know about any upgrades or special things about the home. Build rapport with them and get them as much information as you possibly can. Ask them questions and make sure that they are familiar with the area, the type of home, etc.

Once we receive the appraisal from the appraisal management company we have 5 days to do one of three things:

  1. Move Forward

  2. Appeal the appraisal (if it came in low)

  3. Cancel the contract (if it came in low)

If the appraisal does come in low then we need to work closely with both sides to make sure that we can come up with a solution that is a win-win for both buyer and seller. Ensure that neither side feels like they are being taken advantage of or getting the short end of the stick. As Agents, we need to work together with the cross-sale agent to come up with a good solution.

A good fact to know is that FHA & VA appraisals will stick with a property for 6 months no matter what. Make sure that our clients know this because as a seller if we are not happy with the appraisal and a buyer cancels that appraisal is going to stick with the home so we need to help them come up with a solution and work with the buyer.

Sandy Krestan

There is plenty of business to be had out there in our market but we just need to do a little more work to find and keep it.

Normal/Average interest rates are between 5.5%-6.5% but they are starting to trend down slightly.

Foreclosures are still WAY below the average!

Appraisals are very subjective so it is always a great idea to sell what we will do to ensure the appraisal comes in at value to our sellers during the listing appointment.

Not all lenders allow for appeals to be sure that we are working with the right lenders. Typical turn times are 24-48 hours.

Sandy will absolutely go to bat for our clients!