Top 10 Takeaways: Appraiser Panel (February Industry Update)
February 2023 Industry Update of the Greater Lansing Association of REALTORS® on February 16, 2023.
Thank you to presenters:
-Jeff Bone, 2023 President of Greater Lansing Association of REALTORS®
-Beth L. Graham, Appraiser
-Doug Petroff, Appraiser
-Michael Perron, Appraiser
1. There are 3 things in a REALTORS® control to make an appraisers job run more smoothly. Accurate multiple listing service (MLS) data, photos and comments are crucial to appraisals.
2. MLS photos help everyone establish property condition and building quality. Remember, pictures can be marked as “Private” meaning they do not get sent to brokerage or advertising sites.
3. “Remodeled” and “Updated” have two very different meanings. Remodeled means remodeled fully to the studs. Updated could refer to new cabinets, or new backsplash and countertops, etc.
4. Agents are encouraged to speak to appraisers prior to the appraisal and supply them with a list of improvements, sales data, etc. Once a report is submitted, agents cannot contact the appraiser. Reconsideration of value requests must pass through the lender.
5. When it comes to pricing a home, bracketing is a helpful method. Bracketing refers to selecting comparable properties with features that are superior to and inferior to the subject features.
6. Always double check measurements, do not rely on the measurements in Flex or in BS&A, especially for homes with unique layouts.
7. Repairs can be required on ANY loan type, even conventional.
8. It is encouraged to review the appraisal for technical items missed which can be easily corrected. i.e. a missing bathroom, etc.
9. Manufactured homes need to have an affidavit of affixture. Having a photo of this and identifying it as manufactured in the MLS is highly encouraged.
10. Instruct clients to have access points (attic, basement, etc) clear and available not only for the inspector, but for the appraiser too.