Homeowners guide to a smooth appraisal

First, remember the appraiser has a difficult job and you can help him/her by being cooperative and even friendly on the phone when he calls to schedule the appointment. Trust me, being nice goes a long way. Before the appraiser shows up, make sure the house is picked up, the areas to concentrate on would be the areas the appraiser is going to need to take pictures of. For me it’s usually the kitchen sink area, the master bathroom counter, fireplace, pool, if you have one. Its important to have the counters cleaned off for the photos, the floors clean, the walls free from marks and damage as this all counts towards your condition rating.

The yards should be picked up, no junk laying around, yards maintained, pool cleaned and operating as this also counts towards your condition rating. When I arrive I always give the owner my business card and ask if I can start in their kitchen. I personally always start in the kitchen, it tells me a lot about the rest of the house. I then work my way through the house counting bedrooms and baths, looking for any damage and any improvements and the type and condition of the existing improvements. I then usually have a brief “interview” with the owner. Any recent improvements, things I would not normally notice? If you want to prepare a brief list of the items you feel adds value, that’s always welcome.

Then I ask permission to go outside and measure the house (usually I prefer to go by myself). I measure the footprint of the home and later turn this into a computerized building sketch. This helps determine if there are “bootleg” additions and if the size matches the tax records. While I am outside I look around the eves and windows for signs of dry rot or water problems. When I end up at the front door I knock and thank them and let them know I am finished. If the appraisal is COD now is the time to collect a check. I have learned over the years not to stay and visit to long. The usual question is “so what’s my house worth” I can not answer that question for many reasons, first I have not finished the appraisal, this was just the beginning and second its bad business to haggle over their value on the doorstep.

It could be several days before I could determine the value. After the inspection which usually only last 15-30 minutes on a small tract house, I am off to go drive-by and shoot the “comps” I have selected to use. These are based on similar location, size and other criteria. After this fieldwork is done its back to the office to compile the report on our required software forms, input the building sketch, import the photos of the subject property, usually 3 interior/feature photos and the photos of the 4-5 comps.

It’s at this time when the comparable specs are added that the final valuation begins to form. After all the plus and minus figures are calculated the appraiser has an “adjusted value range” it’s at this time we take a moment and reflect on the condition, the photos, the conversations we had with the owner or Realtor any bits of information we picked up that help determine that final value.

Then we finish off the report, sign it, proof read it several times both on the computer and in printed form and send it off to the lender/client or whoever the intended user is. Once the lender receives the report you would think our job is done but there is often additional info that is needed, in some cases the lender feels additional comps are needed or they may even “cut” the value. Then the original appraiser needs to submit a rebuttal to a cut value. We do this for the client but also to protect our reputation and our approval status with that lender. If the appraisal is for court work we will be called, on the witness stand to testify to our report and defend it against the opposing attorney and his witness. There are additional fees for this type of testimony.

If I can be of help to you I can be reached at activerain.com/cdiamond.