Katy Home Sellers: Facing an Appraisal? Be Prepared! Part One

Inflated appraisals, valuing homes far above their true market value, contributed greatly to the residential real estate collapse. In backlash, the pendulum has now swung in the opposite direction and it can be hard to get a home to appraise for the sales contract price.

Standards are now so strict that the lender and appraiser are not supposed to communicate directly. Historically, appraisers used comparable sales that occurred in the last six months; the time period has now been tightened to only three months. The days when Realtors were encouraged to meet the appraiser with a fist full of comparables, justifying the sales price, are long past.

Still, there are things that a home seller can do to facilitate the process and give their home a competitive edge in the appraisal process. It’s beneficial to have these documents ready for the appraiser:

• A survey of the property.
• List of personal property to be sold with the house.
• Most recent real estate tax statement and legal description of the house.
• Brag sheet that lists major home improvements and upgrades including the date of their installation and cost.
• A copy of the current MLS data sheet and purchase agreement if the property is “pending”.
• Neighborhood information.