Preparing for an Appraisal

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By Lou Tornambe, Sr. Mortgage Advisor, FirstCal Colorado.

It used to be that the inspection was “The Big Hurdle” in the buying and selling process, and if the buyer and seller were able to successfully negotiate and resolve the inspection issues, then the chances were very high that the rest of the process would go smoothly and the house would close as scheduled. Nowadays, especially in light of the recent Real Estate Commission Position Statement #43,  the inspection is still very important and potentially a hurdle, but the appraisal is just as large – if not larger – of an obstacle to overcome.

The Appraiser is the eyes of for the Lender:

Really, is it that important to make a good impression on the appraiser? Absolutely. The appraiser is, essentially, the eyes for the lender, giving the lender an objective account (you hope) of the condition and value of the property. If the appraiser’s opinion of value is less than the purchase price, then the buyer’s loan approval is in jeopardy, not to mention the risk of losing their earnest money and/or not closing on the house at all.

There are things that a seller can do to increase the chances of a favorable outcome on the appraisal. Like providing a list of updates/upgrades/improvements and sharing recent comparables, respectively.

Provide a list of updates and features on the Dining Room Table for the Appraiser:

When written by the seller, the list of improvements can offer the appraiser tremendous insight into any added value to the property, especially for those items not immediately noticeable like added insulation and updated electrical wiring; shared comparable sold homes in the neighborhood provided by the Realtor can enhance the appraiser’s knowledge of the neighborhood market, especially for an appraiser who may not be as familiar with the area.

Your Realtor may want to attend the Appraisal:

And, if possible, the Realtor may want to attend the appraisal in order to provide the recent comps and supporting documentation, as well as to answer any questions the appraiser may have, the lender is still by rule of HVCC not permitted to have any direct communication with appraiser. The appraiser still may or may not appreciate or accept this supporting documentation, but at least the Realtor and seller will have done what they can to help support their case for the value of the property.
Please don’t hesitate to call me with any questions and/or if you’d like more information on HOW to handle issues with regard to the Inspection Objection Resolutions.

LouTornambe Lou Tornambe
Sr. Mortgage Advisor
Cell: 303.880.9977
Fax: 866.557.9017
NMLS: 257554
FirstCal Colorado, 8490 E. Crescent Pkwy, Suite 375, Greenwood Village, CO 80111

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About dherries
Dave and Sally Herries and The RealtyColorado Team - Real Estate Broker serving the metro-Denver area. Offering properties in urban, sub-urban and rural areas. Our mission statement is "Enriching lives through real estate."

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