One out of five real estate pros say they avoid any type of interaction with an appraiser because they think it’s against the rules. But they’re wrong. And sometimes they should.
WASHINGTON – Forty-seven percent of real estate professionals say they’ve had a transaction fall through due to a problem in the appraisal process, according to the National Association of Realtors® (NAR)’ 2022 Appraisal Survey. The most common culprits according to the survey? An appraised value that comes in lower than the contract price, and, according to respondents, a personal belief that the appraiser lacks knowledge of a neighborhood or uses inappropriate comps.
The survey of more than 600 appraisers and 2,500 residential real estate pros was conducted in May.
Many real estate professionals say they’re fearful of talking to appraisers and try to keep their distance during this part of the transaction:
- 21% say they interact with appraisers only when there is an issue with the value
- 19% say they don’t interact with appraisers at all
Of those who don’t interact, most say they avoid contact because they think they’re not legally allowed to speak to the appraiser, or they’re concerned the interaction might lead to appraisal bias.
However, “regulations allow real estate agents, or other persons with an interest in the real estate transaction, to communicate with the appraiser and provide additional property information, including a copy of the sales contract,” according to NAR’s FAQs on the residential appraisal process.
Realtors who do interact with appraisers say they try to provide additional information to help them in their valuation. They also may meet with the appraiser onsite to provide comps, a list of improvements made to the property or information on multiple offers.
Source: National Association of Realtors® (NAR)
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Author: izaakh