These days, in our area, the most questioned aspect of the real estate transaction is no longer, “Will the buyer qualify for the loan?” but, rather, “What about the appraisal?” With 3 ‘bad’ appraisals under my belt during the past year, I have grown extremely weary of that phone call from the appraiser to schedule their appraisal!
Let me first clarify that 2 of the 3 ‘bad’ appraisals were reversed after providing the SAME comparables that were presented to the appraiser at the home. The management companies requested that the appraiser review, providing them with the information that I’m assuming they actually LOOKED at this time, and the proper adjustments were made.
Secondly, when an appraiser phones in our area to MEET us at the home, this means that the appraiser does not hold a key to our Supra boxes, meaning, for the most part, that they are from far away. Something has GOT to be done about this. One of the low-ball appraisals included erroneous information as well as use of comparables from outside the standard distance from a subject property. As well, they included properties from subdivisions that had comparably SIZED homes but, in completely different communities (ie vinyl vs. all-brick communities).
Appraisals are final when it comes to securing money from a bank, so don’t let a poor one ruin your Charlotte real estate plans. Be proactive to ensure that your appraiser is competent and has all the information he or she needs. Your purchase, sale or refinancing goals could be wrecked with a low-ball appraisal.
Minimize the risk of receiving an inaccurate appraisal by …
- Meeting the appraiser at the house. Show them around your Charlotte real estate, just like you’d show a potential buyer. That way you can highlight some of your home’s unique features that they might otherwise overlook. Also, if they have any questions about when things were updated or replaced, you’ll be there to share all relevant information — instead of them just taking a guess.
- Establishing that he or she is geographically competent. Appraisers that don’t know the area can misquote, so be sure to ask them questions, such as how far their office is from the property and if they have access to local MLS data. If you feel the appraiser doesn’t meet geographic competency standards, then you can raise the issue with your agent and the lender involved.
- Providing him or her with comparables. You probably know the neighborhood better than the appraiser, so supply information on recently sold homes that you think are similar to yours. He or she might not use them but, each time that I’ve handed the comparables to the appraiser, the seem very appreciative.
- Record any mistakes. Always ask for a copy of the appraisal to review, because appraisers make slip-ups all the time. Especially if the value is low, be sure to look over the details of the appraisal and call out any discrepancies. If this is the case, you won’t be able to change the designated value but, you can file a complaint against the appraiser. If the mistakes are big, ensure you get a second appraisal.
Don’t let an inaccurate home appraisal ruin your financial goals. We take Charlotte real estate appraisals seriously. Be proactive, do your homework and definitely review the final version. Your agent should provide you with this information to share with the appraiser.
If you’re getting ready to sell your home or purchase a new one and have questions about appraisals, please call me at (704) 491-3310or email me at Broker@TheCharlotteScoop.com for more information.