Most real estate agents feel a little helpless during the appraisal process. It is the job of the appraiser to figure out how much the home should be valued at. While an agent can use this number when placing the home on the market, the process of the appraisal doesn't require much from a real estate agent. Typically, a real estate agent may sit back during this time and wait for the appraisal to get done, but there are some things a real estate agent can help with during this time to make it go more smoothly.
A lot of appraisers only take into account past contracts when deciding on the value of the property. Because of appreciating markets, you want to make sure the most current contracts are taken into consideration. Past market values can bring the price of a home down. You want to provide the appraiser with the most current information so you are able to get the best value for the home.
This is especially important during a buyer's market. When the demand is high and the supply is low, there can be multiple buyers putting in bids for a house. You want to make sure you capture all these bids and hand them over to the appraiser. The appraiser will want to figure out the market value of the home. Many people believe this is the same as what it would cost to replace the house. This is not true. In fact, it is actually the cost someone is willing to pay for the home.
Updates to the Home
An appraiser will look at the age of the home when assessing it. Updates to the home can change the effective age of the home. A real estate agent should be able to get a list of the updates done to the home. Things like cabinetry updates and new paint will not make a major difference, but a new roof or A/C system can have a larger impact on the value of the house.
Competitive Market Analysis
It is always a good idea to present a competitive market analysis to the appraiser. The appraiser may choose to use this information or may not. It can be beneficial to them so they can better understand why an agent priced the home the way they did. Agents should approach it in a professional manner without being too overbearing. This can discourage an appraiser from using the analysis.
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