Ask the Appraiser

Certified Real Estate Appraiser R. L. Banks answers appraisal questions and attempts to give consumers a better understanding of the appraisal process.

Blogger: R. L. Banks
R. L. Banks
Randall Banks has owned and operated the R.L. Banks Company since 1994.

Appraiser Benefits to Sellers

What benefit is a real estate appraiser to you?

I believe most people's dealing with appraisers is likely when they are buying a house  or they're the homeowner accommodating the appraiser for the home inspection in preparing an appraisal to facilitate an already-in-contract transaction.  In either case the seller/homeowner or buyer/borrower does not get direct advice from the appraiser because in reality the appraiser's client is the lender and the appraiser's service is to satisfy the lender's requirements.  The seller and buyer have already made commitments in a signed contract prior to the appraiser being engaged.

I will discuss several ways over the next few posts on how an appraiser can be more directly beneficial to you or your company related to real estate.

If you are an owner who is contemplating selling a property, a knowledgeable appraiser will be able to help you in determining a marketing price, likely marketing time and help you  in making better judgments in preparing your property for marketing and the likely issues your property will have to face related to satisfying loan underwriting requirements.  Related to residential appraising I've seen homeowners start spending money on their home for marketing but fail to spend their limited cash reserves on crucial items that could be “deal breakers” if they can't be remedied prior to closing a sale.  I've seen homes with completely redone, custom kitchens prior to marketing and the owner's money exhausted but the deteriorated roof overlooked.  Therefore a potential sale results in a standstill because during the preparations for the buyer's loan the roof is found to not be insurable by the lender's appraiser.   I would have advised the seller prior to marketing to freshen up the old cabinets if needed but more importantly resolve the deteriorated roof problem because the roof could be a deal breaker at the financing stage whereas older cabinets wouldn't.

In summary, a knowledgeable, experienced appraiser will better prepare you for listing your property or marketing your property on your own by helping you grasp market value, marketing time and to identify those “high importance” issues that may enhance your selling price and prevent time-killing or deal-breaking snags in the contract and financing stage.

 

Till the next...

 

Randy

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