Top 10 Tips for Consumers when Dealing with Appraisers

1. Understand that the person ordering the appraisal, not the person paying for the appraisal, owns the appraisal report.

2. Research sales in the market area and consult with local realtors. Feel free to give the information to the appraiser and understand that the appraiser will always consider the data, but may use different data in the report if it is deemed to be more relevant or recent.

3. Understand that appraisers can not communicate values, fees, or discuss the appraisal with you at any time when the order was placed by your lender.

4. Understand that if there are foreclosures and short sales in your market area, your home may compete with them for buyers in an open market and they can affect the value of your home.

5. Don’t expect the appraiser to give the exact same amount of dollar value to improvements in your home as what you spent on them.

6. Do expect the appraiser to have competence in your market area and access to local MLS data.

7. Do understand that a professional appraisal is a supportable opinion of value. It is not the feelings of the appraiser but rather a supportable prediction of what your home would sell for if offered on the marketplace for a reasonable amount of time.

8. Understand that the inspection portion of a real estate appraisal is just one small portion of the appraisal process. Substantial work must be done before the appraiser inspects the property to research market information and neighborhood trends. Once the inspection is complete, the appraiser may spend hours analyzing the data to produce a credible report.

9. Educate yourself on the components that determine value in your property. Homes tend to be an extension of personal tastes, but the appraiser’s responsibility is to determine which of those tastes translate into a higher market value for your property.

10. Understand that the appraiser is bound by their state licensing laws not to discuss the value of your home with you at any time if your lender has ordered the appraisal.