Most appraisers have faced the conundrum of feeling that something is off during the process of appraising a property. For example, sometimes a comparable seems to be similar in size, amenities and features to the subject, but the sale price is outside the range of other sales. Why does one property differ significantly from others in terms of days on the market? What if the subject has a feature, such as a reinforced roof, that isn’t mentioned in the MLS sheets for any of the comparable properties? Or, vice versa, what if all the comparables have a feature listed that the subject property doesn’t have?
These and so many other questions illustrate why appraisers often need to rely on agents to provide information and insights. Appraisers know the value of agents sharing their knowledge, but sometimes there are misunderstandings about how or even whether appraisers and sales agents should communicate.
Yes, they should. Appraisers are required to verify sales by obtaining additional information than what is in an MLS listing. They will often reach out to agents involved in the sales they use as comparables to do just that. And buyers’ agents can provide information about the subject property upfront to make sure the appraiser has a full understanding of the features and pricing methodology.
How to Share Knowledge
To aid appraisers in connecting with fellow real estate professionals, the National Association of REALTORS® has published a template presentation that appraisers can use to encourage more robust communication and explain the do's and don'ts.
Appraisers can use this presentation to share the benefits of communication and combine it with their own content, sharing their areas of expertise and services.
To use the PowerPoint presentation, download it onto your device and modify it to fit your needs. The template offers places to put your photo and contact information, as well as a suggested script on each slide in the notes section. Once you have customized the presentation, contact your local REALTOR® association. Local associations are always looking for ways to educate their members. See if there’s an opportunity for you to present on the core issue of appraiser-agent communication.
More Info: Appraisers can also find a printable flyer and other resources on the Appraiser/Agent Communication Resources Page.
Opening Doors
Agents and appraisers sometimes clash when it comes to valuation and acceptable comps. It’s important, however, to remember that both professionals are aiming to do their job well—and they’re better working together. All agents and appraisers who are members of the National Association of REALTORS® are REALTORS® and bound by the Code of Ethics to not only serve their clients but treat one another with respect.
When appraisers take the step to proactively reach out to their fellow REALTORS®, it opens eyes and opens doors.
And remember that communication goes both ways. Both agents and appraisers should be prepared to answer when the other reaches out for information, recommendations or new assignments.
