Download What do Appraisers Wish Real Estate Agents Knew

What do Appraisers Wish Real Estate Agents
Knew about an Appraisal Inspection?
Here are some of the answers from real-life appraisers...this information may help to
make the appraisal process easier and faster for everyone!
HELPFUL INFORMATION TO
BRING TO INSPECTION
• A clear and fully executed P & S Agreement (or
fully executed sales contract), with all riders and
addenda included.
• Any conditions of sale, including repairs.
Appraisers can photograph repairs at time of
inspection to show that it has been completed.
• Seller’s property information disclosure
statement.
• Seller’s lead paint disclosure statement and
documents (mandatory disclosures).
• Assessor record, tax bill, betterments, etc.
• Deed
• Home Inspection Report (any items of concern).
• Plot Plan stating frontage.
• A list of items that the appraiser should be aware
of: recent remodeling or updates to the
mechanical systems, as well as negative items.
The appraiser can support condition ratings and
take photos for the client if they know about these
items at time of inspection.
• Information about “invisible” items such as
French drains, underground oil tanks, etc.
• Hidden disclosures such as mold, infestation or
previous fire damage.
• Comparable sales for appraiser to review.
Appraisers find it helpful to know which
comparable sales that brokers use to establish
the listing price. Brokers know their
neighborhoods and town better than most
appraisers; even if the appraiser ultimately
chooses other comparables, it gives them an
increased perspective.
For New Constructions:
- Information on new construction comparable
sales in the subject development, or in market
area with same builder and/or other builders of
similar construction quality.
- Any known under-agreement sales or lot
reservations in subject or similar development.
- Site plan for both development and
subject property.
- Floor plan.
- Construction specifications.
- Standard construction vs. upgrades, custom
options.
- Information on option prices paid for within and
outside of sales price.
- Occupancy permit.
- Sales or marketing data used by broker or sales
office.
- Builder history in the area (other existing
properties or ones under construction).
- Information on what existed on site prior to new
construction.
- New construction comps, copy of HUD settlement
statement
For Condominium Sales (existing
constructions):
- Condo association or management contact
information.
- Condo budget information, rules and regulations,
special assessment information, condo fee (what
is included in it).
- Site size.
For Multi-Family Sales (existing constructions):
- Lease history.
- Rental comparables obtained by the broker. Often
a broker or landlord may have knowledge of
rents, terms, vacancy rates for other rental
property in the area.
NOTE: appraisers must inspect all bathrooms.
North Atlantic Appraisal Company March 2011
FHA REQUIREMENT REMINDER
MISCELLANEOUS
For FHA Inspections, the following are required:
• Photographs: Brokers should inform
homeowners that appraisers must take
photographs of the property during the
inspection; often the homeowner is not aware of
this because the appraiser does not have direct
contact with them.
• ALL utilities must be on
(heat, gas, electricity, water).
• Appraisers must run water and flush toilets.
• Appraisers need to see the attic.
North Atlantic Appraisal Company
• Peeling paint should be scraped and re-painted
prior to inspection. Interior and exterior if built
prior to 1978. Exterior of after 1978.
• Site plan showing location of septic system
and/or well (if any).
• If well and/or septic, appraiser needs to know if
town water or sewer is available to the site.
• Repairs: If a required repair is worth less than
the re-inspection fee, having it completed prior to
the appraisal inspection saves the borrower the
cost of re-inspection.
• MLS Listing: Make you sure do not include the
basement area in the GLA of a property. Also, if
condominium properties are listed as single
families, it skews the market data.
• Reporting sales information: Putting sales
concession information and other data pertaining
to differing sales prices reported on tax and MLS
records into MLS databases would shorten the
appraisal process; much time is spent in
appraiser phone calls confirming data.
IN CONCLUSION....
Please return phone calls quickly. When calls to confirm sales or answer appraiser questions are
not returned in a timely manner, it slows down the appraisal process.
Please be on time for the inspection, or call if you will be late.
Please be straightforward with information.
Please make sure you have the correct lockbox number and that the key is in the lockbox!
North Atlantic Appraisal Company
700 West Center St., Suite 13
West Bridgewater, MA, 02379
ph. 508.559.0444
http://www.naacc.com
Jonathan Asker, SRA, RA
CEO
Email: [email protected]
Phone: 508.559.0444
Twitter: @JnathanAsker
LinkedIn: http://www.linkedin.com/pub/jonathan-asker/7/428/345
Blog: http://blog.naacc.com
North Atlantic Appraisal Company March 2011