In real estate industry the relationship of agents and appraisers is one of the most confusing ones. Several misunderstandings exist between these guys regarding the communication between them. Especially since last year these issues have been increasing rapidly, thanks to the legal standards set by authorities. Several legal standards have been set that make the communication part confusing for both of them. The end result is a bite in the earnings of agents because in today’s market if an appraiser makes any mistake during the appraisal process and arrives at a value that doesn’t seem credible to the seller than it’s the end of sale. This way the mistakes of appraisers affect the earnings of agents too. But if this communication is understood carefully then both of them can help each other and make each other’s work easier.
First of all both of these guys should understand one thing – they can communicate only before the creation of appraisal report. Once the report has been created and sent to the client, the communication between them should be aborted. Now let’s understand how agents can help appraisers during the appraisal process. Well, agents can help in completing the process quickly and accurately by providing information that would not be available to appraisers. For instance, listing agents may be included during the process because they may clarify the necessary items (like a remodeled kitchen) and may also verify the details noted down by the appraiser. Even more, they can provide their own appraisal package for speeding up the valuation process. The appraisal package provided by agents generally includes a purchase contract and comps which they used for determining their own price of the property.
Agents also have access to off-MLS listings (also known as pocket listings) which can’t be accessed by other people like traditional MLS so in many markets they may provide useful information about the property to appraisers that would not be available to them otherwise. These are a just few ways by which agents can help appraisers during the appraisal process. Needless to say that there may be countless other ways too!
But again, agents should also remember one more important thing here – once the appraisal report has been developed and sent to the client, they should not communicate with together regarding the property. If you as an agent want to discuss about an error in the appraisal process then you should discuss it with the lender who ordered that appraisal.
The appraisal standards and qualifications are improved year-by-year for ensuring the independence and integrity of Real Estate Appraisers. But as long as that independence is not threatened, there’s nothing wrong in communicating with them. In fact, it’ll be helpful for all.