What should a broker put into the "Appraisal Package", or not?
There are many things that Brokers & Sellers can do to put the property that is the subject of an appraisal in the best position possible for the most favorable appraised value outcome.
Remember this, YOU are the authoritative source of information on your listing.
The most important task is providing as much accurate, current, and detailed information on
the subject property as possible. Most of that information can easily be provided through the
local MLS, which is not only beneficial to the appraiser but equally beneficial when the
appraiser uses that same information as a future comparable and especially to brokers who
need quality data to prepare a market analysis for a client (potential buyer or seller clients).
This important information is the first opportunity for the listing broker to provide factual
insight into the subject property and also disseminates the broker’s unique knowledge of the
local real estate market through supporting documentation and information.
The bottom line is to provide everything about the property that is factual and be descriptive
about all the unique characteristics of the property. Pictures are worth a thousand words, so
incorporate as many photographs as the local MLS system will allow and include not only a
front photo, but also a rear photo and possibly a street scene or other neighborhood amenity
photo. Video has now become king. Imbed Videos or YouTube to help tell the story.
Although listings in MLS are considered advertising by the NCREC, its fundamental intent is
to be an advertisement to our fellow cooperating brokers, and as such focus on telling the
story about the property as if you are talking to a fellow cooperating broker, and giving that
broker all the information that they will need that helps culminate into a sales contract. Think
about it as if you needed all the information on the listed property, and what information
would you want and need to use to help you procure a sales contract?
Distinguish between above-grade living area from below-grade living area. Include plats,
surveys, deeds, covenants, HOA documents, budgets, and balance sheets. Floor Plans are now essential for buyers to visually remember your listing’s unique characteristics. Provide a detailed list of recent upgrades, remodeling’s (including associated dates and costs).
Provide a fully executed copy of the purchase contract along with all the addenda. If there is a “Pre-Listing Inspection”, talk to your seller client about the pros and cons of
providing a copy of the summary from the inspection report, as there may be newly
discovered material facts that will have to be disclosed. Inform your seller client how
important it is to make sure the property condition (inside and outside) is the best possible
for the appraisal inspection and inform your client that the lender often requires the
appraiser to take photos of the interior and exterior of the residential improvements in
addition to measurements. Furthermore, explain to your client that the role of the appraiser
is NOT to confirm the sales price but to provide the lender with an independent, impartial,
and objective opinion of the value of the underlying collateral which a loan will be based on.
Lastly, be helpful to the process and certainly don’t limit or restrict it. Make it as easy as
possible for the appraiser to gain prompt access to the property for the appraisal inspection.
Do the legwork on every listing, and you will build long-term credibility with your fellow
brokers by being exceptionally informative and responsive.
Remember, you are the authoritative source of information (the expert) on your listings. So,
utilize all the tools at your disposal to help the appraisal process by putting the property in
the best position possible for the most favorable appraisal outcome.
The “New Normal” is for brokers to develop an “Appraisal Package” on every listing.
The above does not constitute Legal Advice. Therefore, find a competent attorney for legal advice.
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