Winter 2024 Chicago REALTOR® Magazine
The official publication of the Chicago Association of REALTORS®.
The official publication of the Chicago Association of REALTORS®.
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How to Be<br />
A Partner<br />
During the<br />
Appraisal<br />
Process<br />
Did you know, in 2023, 42% of REALTORS ®<br />
had a transaction fall through due to<br />
an appraisal? According to the National<br />
Association of REALTORS ® (NAR’s) Appraisal<br />
Survey, this was most influenced by the<br />
ultimate appraised value or use of incorrect<br />
comps.<br />
Appraisals can be one of the most nervewracking<br />
parts of the transaction for<br />
REALTORS ® , homebuyers and sellers; you<br />
want to ensure the value of the home holds<br />
up, but you are also putting your trust in<br />
another, entirely new party’s hands.<br />
However, as a REALTOR ® , you can mitigate<br />
some of this stress and be a partner in the<br />
appraisal process. As the listing broker,<br />
you likely know this property and the<br />
neighborhood better than anyone—you can<br />
use this knowledge! While attempting to<br />
influence the appraisal process is illegal,<br />
it may not be widely known that there are<br />
acceptable, actionable steps you can take to<br />
partner with an appraiser and help inform the<br />
outcome of an appraisal.<br />
According to NAR’s Appraisal Survey,<br />
about 90% of REALTORS ® interact with an<br />
appraiser in some capacity, but only about<br />
47% of those REALTORS ® say they interact<br />
with appraisers by providing additional<br />
property information. In fact, “Many of the<br />
other comments indicate that the member<br />
has not interacted with an appraiser yet,<br />
that they only interact with an appraiser<br />
when the appraiser requests it, or that they<br />
interact only to schedule appointments,”<br />
the Appraisal Report states.<br />
So, what can you do as a partner during the<br />
appraisal process?<br />
What To Do During<br />
the Appraisal<br />
Meet with the Appraiser<br />
According to the NAR Appraisal<br />
Survey, just 26% of the aforementioned<br />
REALTORS ® interact with an appraiser only<br />
when there is an issue with the appraised<br />
value of a home. But, meeting with the<br />
appraiser is possible before it gets to that<br />
point.<br />
According to Illinois REALTORS ® Appraisal<br />
FAQs, “You can meet the appraiser at the<br />
property and answer any questions they<br />
might have. Don’t get in the way of the<br />
appraiser but make yourself available to<br />
help provide the full and accurate picture<br />
of the property.”<br />
26 <strong>Chicago</strong> REALTOR ® <strong>Magazine</strong>