Introduction to appraiser – Jeff Gilmore
Opening question, OK, we are held to a certain standard on all sides from a lending and real estate standpoint, if we don’t adhere to these rules there are major ramifications! Is there an appraisal board you answer to? What are the risks or fines or penalties? Can they suspend or revoke your license? Who oversees your work to make sure it’s fair and just….
Let’s talk appraisals
Alright, what’s the process? Can you walk us through a normal appraisal order once you get the request from the lenders AMC?
Let’s talk appreciation, with the home prices in certain pockets appreciating like crazy and with inventory levels being super low so houses in some cases are selling above list price, how do you account for that on an appraisal? Is it a line item adjustment? A time adjustment? Is there a comfort level or percentage that could go up to as far as value?
How do you take into account appreciation trends in the area and how would you advise Realtors to consider that when pricing a home to sell?
In the current environment, with homes going 20-30-80K over asking, would you or could you consider neighborhood trends of homes? Where some neighborhoods are so desirable and homes in that hood are selling on average at way over list price when coming to a value….how do you deal with that?
What’s the best way to comp a house in today’s market to try and protect clients so they don’t overbid too much?
Comps
Let’s switch gears.., Walk me through how you select comps…especially when it’s a unique property or in a more rural area, do you stay in the same zip code? Go back further in time…6-12-18 months back? Go out further on your search? Use different types of properties? One story vs two story?
Can you walk through the process of how you select the comps you will be using?
When searching for comps, do you stay in the same zip code even if subject property is super close to a neighboring Zip code OR another county?
How do you come up with the price per sqft that you use on adjustments? – Do you use price per sqft?
What values do you give finished basement? Does it make a difference for a “walk-out” basement?
Is there a different valuation system for FHA, VA or USDA other than Conventional? What are some red flags when dealing with FHA or VA loans?
What is the best way to dispute an appraisal? Can we dispute an appraisal?
OPEN IT UP FOR Q&A
Conclusion
As the appraiser, do you appreciate when realtors give you the breakdown of upgrades and costs associated with the upgrades or would you prefer not having it? Also if they are aware of homes that sell that never listed so never hit the MLS….do you want us to share that info and if so how? How can an these realtors come alongside you & the clients to help you to support value? –Jeff Gilmore