Many people do not understand the appraiser’s role in the homebuying and lending process, nor what a home appraisal entails. Common myths about appraisals, as well as a general lack of knowledge, could lead to friction between you and your appraisal clients. In order to avoid misunderstandings, manage expectations, and provide the best possible customer service experience, consider taking the time to explain the process upfront. Here are four resources you can use to help your clients understand the appraisal process.
This thorough 16-page guide from The Appraisal Foundation explains “the definition of a credible appraisal, the appraisal process, elements of a credible appraisal, the importance of appraiser independence, and how to proceed if you feel that a correction needs to be made to your appraisal report.” It also includes definitions of common appraisal-related terms, as well as a lengthy FAQ section that provides helpful answers to frequently asked questions.
This easy-to-read post from Bank of America’s Better Money Habits blog is a quick 3-minute read that explains what a home appraisal is, who an appraiser is, and who orders and pays for the appraisal. It also breaks down what factors determine a home’s value, summarizes the difference between an appraisal and an inspection, and gives a brief explanation of what consumers can do if the appraisal comes in low or if they don’t agree with the appraisal. Additionally, it includes five simple tips to prepare for a home appraisal.
Free guide: Upgrade Your Career with Luxury Home Appraisals
This fact sheet from the Appraisal Institute addresses several common myths about appraisers and appraisals, including misconceptions about appraised value versus market value, appraiser objectivity, market value versus replacement cost, property value appreciation in a robust economy, and more. It provides succinct explanations as to the reality behind these misconceptions.
This blog post is geared toward appraisers rather than consumers. It has good information to help you gain a clear understanding of your role versus the role of a home inspector, so that you can then pass that info along to your appraisal clients. Furthermore, you can take our top-rated CE course, Residential Property Inspection for Appraisers, which is designed to help you sharpen your appraisal inspection skills and teach you to better document your inspection of the property.
Related reading: What’s Most Important for Building Strong Appraiser-Client Relationships?
