Recently, our Kansas City region held a Roundtable Discussion titled “Appraisals: The Dirty Little Word in Real Estate.” We wanted to pass on some valuable tid-bits from the discussion!
- What are the differences between FHA and Conventional Appraisals? ***Well, not as much as there used to be. The main difference our expert noted was that fact that FHA Appraisals are more concerned with the structural soundness and safety of the subject property.
- How can agents help during the appraisal process? ***Definitely get involved. The more proactive the agent is, the more positive the outcome. Our expert says that it is a huge help when agents provide the comparable properties they used to reach their price as well as explanations, lists of upgrades and updates and amenities.
- What can a home owner do to help the appraisal process? ***First impressions are key! Even small things such as painting the front door can help improve the sensed value of the home. If the home appears to be well cared for, it will improve how the appraiser views its value.
- How do appraisers determine whether or not a room is considered a bedroom? ***Obviously they make sure bedrooms have closets and windows, however, with the occasional exception of reverse 1.5 story homes, appraisers only look at bedrooms above grade. They do, however, note that there are additional bedrooms “below grade,” but do not technically count basement bedrooms as such.
- How do appraisers choose comparable properties if there are several foreclosures in the neighborhood and the subject property is not a foreclosure? ***Our expert explained that while they do use the foreclosure properties on occasion, they always try to use properties that have not gone through the foreclosure process. In addition, they do try to take into consideration that the “comps” were foreclosures or even short sales. He will go outside of the normal radius to find the best comparables for the subject property.
- If you are dissatisfied with your appraiser, you can always request a different one from the bank. They have pools of appraisers and need to know if they have someone who is not doing their job correctly or professionally.
- When it comes to roofs, 3 Layers is acceptable for appraisal purposes as long as the 3rd layer is in good shape.