A recent experience made regular contributor Troy Palmquist wonder: How many listing agents show up to appraisals? Here’s why he thinks it’s worth popping into the appraisal on your sellers’ behalf.

Troy Palmquist is an indie broker in California with more than a decade of experience. His regular column, which covers a range of helpful tips for agents and op-eds on industry happenings, publishes Thursdays on Inman.

Whether you’re a rookie agent, a rising team leader or an established veteran broker, we can all benefit from sharpening our skills. Follow our “Back to Basics” series to learn fundamental strategies, tactics, philosophies and more from real estate pros across the industry.

Whether buying or selling, appraisals are integral part of the process. If an appraisal is inaccurate, it can cost your client thousands of dollars, which is why I’m always in attendance when an appraiser is on-site.

For those who need a refresher, the very definition of an appraisal is an estimation of a home’s current market value. A licensed appraiser completes this estimation, which is calculated by comparing the recent sales of homes in the area as to the property that is being appraised. This is required by mortgage lenders to be sure that the money they are lending to a new homeowner or a current homeowner is a fair amount for the home.

An appraisal can also be a great negotiation tool when it’s time to finalize the purchase price.

I was recently sitting at a house with the appraiser, and it made me think: How many listing agents go to the appraisal? And is there a benefit? Well, for those of you who are unsure, the answer is yes. Here’s why.

1. Who else knows the property better than the listing agent?

Appraisers are busy people, and they might gloss over the details. It always seems that appraisers have many homes to review and not much time to do it in.

If the listing agent is in attendance, at the very least he or she can point out the various updates, features and highlights that an appraiser might not easily catch upon first look.

2. Agents understand the complex factors behind the sale

Why leave the guesswork or homework up to the appraiser? Appraisers are not informed of the complex factors that went into the sale. They rarely know why it sold for the price it did in the first place. That is why having an agent on-site and developing a rapport with the appraiser can come in handy.

A few of the misconceptions that can affect an appraisal include upgrades to the home, activity while it was listed, number of offers, what was wrong with some of the comps if they bring the value down, why a particular comp isn’t a comp and, in some circumstances, reasons for the owners being forced to sell low, as well as any objections the buyers had.

All of these unknowns create a disconnect if not brought to the appraiser’s attention.

3. Appraisals and home values are like a piece of art

Much like appraising art or sculpture at a museum, everyone has a different opinion. And ultimately, it all depends on what a person is willing to pay.

Throughout my career I’ve always said that you should have three different appraisers at a property. If other parties don’t agree, I’ll bring them in. This is important because it shines a light on the purchase price.

For example, if you asked three different appraisers the value of a home they would all come up with different valuations, different comps, and different price points, especially if they did not bring it in at the purchase price value. When a low appraisal comes in on a property, I have routinely seen the second appraiser bring the property appraisal in at value.

In my opinion, agents who don’t attend appraisals are doing a disservice to the property. As a broker-owner, I also encourage my agents to attend home inspections, which are just as important.

Do you feel the same? Drop us a line in the comments. 

Troy Palmquist is the founder and broker of The Address in Southern California. Follow him on Facebook, or connect with him on LinkedIn.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×