By Lauren Bunting
(Nov. 11, 2022) The National Association of Realtors conducted the 2022 Appraisal Survey, and the results were published showing 47 percent of real estate professionals say they have had a transaction fall through due to a problem in the appraisal process.
The report stated that the most common culprits are an appraised value coming in lower than the contract price and a perception that the appraiser lacks knowledge of a neighborhood or uses inappropriate comps, the survey shows.
The survey of more than 600 appraisers and 2,500 residential real estate pros was conducted in May.
Yet, many real estate professionals say they are fearful of talking to appraisers and try to keep their distance from this part of the transaction.
Twenty-one percent say they interact with appraisers only when there is an issue with the value; 19 percent say they don’t interact with appraisers at all.
Of those who don’t interact, most say they avoid contact because they think they’re not legally allowed to speak to the appraiser, or they’re concerned that the interaction might lead to appraisal bias.
However, “regulations allow real estate agents, or other persons with an interest in the real estate transaction, to communicate with the appraiser and provide additional property information, including a copy of the sales contract,” according to NAR’s frequently asked questions on the residential appraisal process.
Many Realtors choose to interact with appraisers to at the initial level of the appraiser’s site visit by meeting them at the property.
This is a good opportunity to ask the appraiser if they need any additional information, provide a list of improvements made to the property and possibly discuss recent comps.
Lauren Bunting is the Broker of Record for Keller Williams Realty of Delmarva in Ocean City.