Do you rely on appraisals in your business?

I hate to break it to you, but there are appraisers who don’t understand the appraisal process. Whether they are new to the practice, don’t understand the difference between appraisals prepared for lending vs non-lending, or just weren’t trained properly, it can all result in poorly prepared appraisal reports. For some appraisal users, even a well prepared appraisal report is difficult to understand.

if you find that you and your clients are relying upon an appraisal report, there are many facets that you probably need to understand; ones that extend far beyond that bottom line number that indicates the Market value for the property in question.

in the same way that you can’t tell your doctor that something is wrong without knowing the underlying basics of your body, it would be difficult to complain about an appraisal, or explain an appraisal to your clients, if you don’t understand what you are reading and how to identify it’s strengths and weaknesses.

Real Estate Agents

It happens all the time, you are under contract and the appraisal comes in low. it is beyond frustrating and you feel like your hands are tied, because communication with the appraiser is so limited. you still have to relay the information to your client, and they aren’t likely to be thrilled with their options.

Whether you want to prepare your client at the outset, want to maximize the appeal of a property to insure the highest value possible, Or…you need to request that a lender consider a different appraisal altogether, these are the tools for you!

Attorneys

if you and your clients are relying upon appraisals for mediation or a potential hearing, you need to be absolutely certain that the appraisal is compliant and supportive of the value opined within. a great appraisal can win a case and a bad one can be a huge weakness. understanding the difference between the two can fortify and strengthen your position.

in the same way that attorneys need to meet the standards of the bar, an appraiser must be USPAP compliant. these courses can help you identify the characteristics of a good appraisal, and what you need to look for in an expert witness.

Appraisers

It took an act of god to find a mentor, and while you understand the basics of performing the appraisal, you may need more support or just a more comprehensive understanding. there are valuation concepts that aren’t taught in classes and functional and operational methods that need more clarification. i have been appraising for over 29 years, and i would be lying if i said i wasn’t winging it for the first 10.

i did what i was told by my supervisor, but i didn’t understand it. that definitely affected my work product. if you want to be more than a box checker, better than a “skippy”, join me for appraisal basics and more!