How to Tell, Early On, if a Home is Likely to Appraise
The listing agent (representing the Seller) is meeting the Appraiser — representing the Buyer’s mortgage lender — at the house (note: the listing agent should always meet the Appraiser at the house).
What should they have with them, to provide to the Appraiser?
A. Hard copies of the 3-4 best Comp’s (“Comparable Sold Properties”) for the home, including all MLS photos (Realtors and Appraisers refer to the to-be-appraised home as “the subject property”).
B. An updated analysis of the key differences (“adjustments”) between the Comp’s and the subject home (Realtors and Appraisers refer to this as a “Comparative Market Analysis,” or CMA).
C. The most recent, post-Inspection Amendment, showing the (presumably) lower final sales price.
D. Details on any nearby “Pending” sales, particularly those that sold in the first few days on the market (indicates the Seller likely got full price, if not more).
E. If the subject property sold in multiple offers well above the asking price, copies of the other offers (with any confidential info redacted).
F. A six-pack of beer.
Answer: all of the above, except “F.”
Proper Role: Providing Good Market Info
Like any professional, no good Appraiser wants to be told how to do their job.
But, when the listing agent has extensive, detailed knowledge of the local housing market — which they should! — good Appraisers are usually receptive to reviewing that info.
P.S.: So, how does the listing agent know the home is likely to appraise?
When the Appraiser volunteers a reassuring, “I’m not worried” (or the equivalent).
In practice, it usually takes 7-10 days for the Buyer to receive the formal report.
