Q: Can you give a brief run-down of the appraisal process?
A: When I, as a Realtor, go and look at properties with a homebuyer [there isn’t] an appraisal on a property. Usually, there is a purchase price that is actually on the property and listed on the Multiple Listing Service (MLS) system.
At that point you go and show the property. There is not an appraisal done on the property until after you are under contract. We, as Realtors, have a responsibility to the buyers of the property to let them know what the current values are of the homes that have been sold in that neighborhood. When an appraiser appraises the property in this current market, he or she is only allowed to go back six months and look at the sales that are in the neighborhood.
Basically, what we try to do as Realtors is run a comparative market analysis. We will look at properties that have been on the MLS system for the past six months. We will look at comparable homes with similar features.
In my opinion, Realtors and appraisers speak two different languages. Realtors speak more in price per square footage and appraisers don’t use that method as much as Realtors do.
Local Advertising by PaperG