Real Estate

Homeowner’s Guide to a Smooth Appraisal

Valuing your home can be stressful. I’d like to help take some of that stress away and help you get the most out of your testing experience. As a seasoned Southern California appraiser with over 20 years of experience, I would like you to see the assignment through our eyes.

First, remember that the appraiser has a difficult job and you can help him by being cooperative and even polite on the phone when you call to make the appointment. Trust me, being nice goes a long way. Before the appraiser shows up make sure the house is ready, the areas to focus on would be the areas the appraiser will need to take pictures of. For me, it’s usually the kitchen sink area, the master bathroom counter, the fireplace, the pool if you have one. It’s important to have clean photo counters, clean floors, walls free of marks and damage, as these all count towards your condition rating.

Yards need to be picked up, no trash lying around, yards maintained, pool cleaned and working as this also counts towards your condition rating. When I arrive, I always give the owner my business card and ask if I can start in his kitchen. I personally always start with the kitchen, he tells me a lot about the rest of the house. I then work my way through the house counting bedrooms and bathrooms, looking for damage and improvements, and the type and condition of existing improvements. Then I usually have a short “interview” with the owner. Any recent improvements, things you wouldn’t normally notice? If you would like to prepare a short list of items that you think add value, that is always welcome.

Then I ask permission to go outside and measure the house (I usually prefer to go alone). I measure the footprint of the house and then convert it into a computerized construction sketch. This helps determine if there are “pirate” additions and if the size matches the tax records. While I’m outside, I look around windows and windows for signs of dry rot or water problems. When I’m done at the front door, I call and thank them and let them know I’m done. If the appraisal is cash on delivery now is the time to cash a check. Over the years I have learned not to stay and visit for a long time. The usual question is “so what is my home worth?” I can’t answer that question for many reasons, first I haven’t finished the appraisal this was just the beginning and second it’s a bad deal to haggle its value at the door.

It could be several days before I could determine the value. After the inspection, which usually only takes 15-30 minutes in a small house, I go out to drive by and shoot the “comps” I’ve selected to use. These are based on similar location, size, and other criteria. After this field work is done, you return to the office to compile the report into our required software forms, enter the building sketch, import the photos of the property in question, typically 3 interior/feature photos and the photos of the 4-5 comps.

It is at this point when the comparable specifications are added that the final valuation begins to take shape. After all the positive and negative figures are calculated, the appraiser has an “adjusted value range”, it is at this point that we take a moment and reflect on the condition, the photos, the conversations we had with the owner or the real estate agent, any piece of information we choose. until they help determine that final value.

We then finalize the report, sign it, review it several times both on the computer and in print, and send it to the lender/client or whoever the intended user is. Once the lender receives the report, they will think our job is done, but often additional information is needed, in some cases the lender feels additional compensation is needed or they may even “cut” the value. The original appraiser must then submit a rejection to a cut-off value. We do this for the customer, but also to protect our reputation and approval status with that lender. If the appraisal is for judicial work, we will be called to the witness stand to declare our report and defend it against the opposing attorney and his witness. There are additional fees for this type of testimonial.

If I can be of any assistance, you can contact me at activerain.com/cdiamond.

Appraiser/Author,

Clifford Diamond, CREA

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