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|Posted on July 2, 2015 at 12:00 AM|
Remember, the appraiser is neither your friend nor your enemy. The appraiser’s job is to present a credible report to the lender. To the extent the broker can assist, the better for all parties.
It is helpful to offer the appraiser comparable sales and listings. Some appraisers are very old school and will not take any information you have but most are not this way and will welcome any help you may give.
In doing so, you may wish to keep a few things in mind.
1. Most reports today require four comparable sales and two comparable listings.
2. If they are available, they should be the most current, i.e. within nine months. Otherwise, go back as far as one year.
3. They should be comparable by location, lot size and GLA or gross living area. And keep in mind that finished basements are not GLA. Room counts do not include minor rooms and bath counts are above grade only. Basement rooms are accounted for separately. Guest/Pool houses are also accounted for separately.
4. Comparable quality and condition also plays a key role in making a proper comparison.
Most appraisers will not tell you your comps are inadequate. They will simply take what you have and find the most suitable alternatives.
From our experience, if you can present the appraiser with comparable sales and listings with just these four items that contribute to value, you are going to be of great help and will certainly make the process go smoother. If the comps lack similarity to the subject with these important comparisons, the support for the sale price will be weak from the sales/listings you provide.
For further information, feel free to contact us.