How a Newly Licensed Appraiser Can Ensure Quality Work

As with anything in life, practice makes perfect, and a new real estate appraiser who hasn’t garnered much experience may make some mistakes. Fear not, though—this article will help you learn common mistakes to prevent negative appraisal-related issues with your clients. Regardless of whether you’re a lender, a seller, or a licensed appraiser, it’s helpful to get ahead of errors before costly mistakes are made. Avoiding mistakes that are easy to correct can protect your reputation and contribute to your success, especially if you are just becoming an appraiser.

Don’t Just Consider Data

Once the appraisal process has been completed, it is vital to review the accuracy of the appraisal report as inconsistencies can be found, and having a fresh set of eyes will ensure confidence in your finished work. While looking at the data is important, it is also relevant to review the choice of diction. Using boilerplate language can hurt an appraisal, as it is too generic and does little to describe the positive attributes of a given property, its neighborhood, and other amenities. A simple oversight like this one could cause an appraisal to come in lower than expected.

Choose the Right Comparables

Unfortunately for sellers, the internet has made buyers more educated regarding properties, meaning they’re less likely to pay a higher price for a home after they’ve done some research. That is why having accurate comps is so vital. Two properties with similar square footage do not necessarily have the same price per square foot. For a more accurate appraisal and to expedite turn times, it is necessary to have strategically chosen comps.

This is where local knowledge comes into play. Don’t simply look for properties of the same size, age, and other immediate characteristics, but consider factors such as school systems and location. For example, is the property right off of a noisy highway or in a quiet neighborhood with waterfront views? In addition, be sure to employ techniques like bracketing to choose sales. Lastly, taking into account not only recent sales but also pending sales can increase the chances of an accurate valuation of the property. Properties that are priced based on market data sell more quickly and closer to their asking price, which is why using the right sales comparisons is important.

Prioritize Communication

While you want to be thorough in your examination and investigation of a particular property, it’s a good idea to check with the seller or agent to confirm exact details regarding significant updates to the property. Appraisers and agents are a useful resource to one another, each bringing valuable and pertinent information to the table. To help facilitate this, a real estate agent might provide an information packet outlining certain details, such as confirming the property description, including a property sketch or other visual representations, and including an improvements section. Having accurate and consistent information between a licensed appraiser, agent, and seller can only be done with open lines of communication.