My Blog

How to Prepare for an Appraisal

As you know the appraisal is one of the last necessary factors before a sale or refinance can happen. It allows the property transactions to occur among the buyer, seller, real estate agent and mortgage lender, or is the last step for refinancing.

Before an Appraiser arrives at the subject property, there are a few things you should tell your client. By law, an appraiser must be state licensed to perform appraisals prepared for federally related transactions. Also by law, your client is entitled to receive a copy of the completed appraisal report from you the lender. Since you are my client I cannot release it to them without your expressed written consent. So please let your clients know how they can receive a copy of the appraisal from you.

To facilitate the appraisal process, it's beneficial to have your clients provide these documents to the appraiser at the time of inspection:

• A plot plan or survey of the house and land (if readily available)
• Information on the latest purchase of the property in the last three years
• Written property agreements, such as a maintenance agreement for a shared driveway
• List of personal property to be sold with the home if any
• Title policy that describes encroachments or easements
• Most recent real estate tax bill and or legal description of the property
• Home inspection reports, or other recent reports for termites, EIFS (synthetic stucco) wall systems, septic systems and wells
• Brag sheet that lists major home improvements and upgrades, the date of their installation and their cost (for example, the addition of central air conditioning or roof repairs) and permit confirmation (if available)
• A copy of the current listing agreement and broker's data sheet and Purchase Agreement if a sale is "pending". ( The appraiser will need the sales contract or purchase agreement prior to the property inspection).
• Information on "Homeowners Associations" or condominium covenants and fees.
• A list of "Proposed" improvements if the property is to be appraised "As Complete".
• A copy of the contract of sale. ( The appraiser will need the sales contract or purchase agreement prior to the property inspection).

Once the appraiser has arrived at the subject property, your clients do not need to accompany him or her along on the entire site inspection, but your client should be available to answer questions about your property and be willing to point out any home improvements.

Here are some other suggestions:

• Accessibility: Make sure that all areas of the home are accessible, especially to the attic and crawl space
• Housekeeping: Appraisers see hundreds of homes a year and will look past most clutter, but they're human beings too! A good impression can translate into a higher home value
• Maintenance: Repair minor things like leaky faucets, missing door handles and trim
• FHA/VA Inspection Items: If your borrower is applying for an FHA/VA loan, be sure to ask your appraiser if there are specific things that should be done before they come. Some items they may recommend might be: Install smoke detectors on all levels (especially near bedrooms); install handrails on all stairways; remove peeling paint and repaint the effected area; provide inspection access to the attic and crawl spaces.

Please note that we all work hard to make sure that the transaction of a sale or refinance goes as smoothly as possible for everyone involved in the transaction. If the property, rooms in the property, or if certain areas of the property can not be accessed this may delay the process and make things more difficult for all. If we all work together, and educate the loan applicant we can make their experience a pleasant one.

Please feel free to comment on this article and state your opinion on how we can make things easier for you..

Thank again for your business,

Jeff.....................