As real estate professionals we are constantly aware of the scrutiny our industry is under and the continued uncertainty of the marketplace. Appraisers are not to be influenced by members involved in a transaction due to regulations, but are entitled to accept comparable information from homeowners and real estate agents.
For example, when doing a relocation appraisal the appraiser may be supplied comparable information from the homeowner, which the homeowner may have received from real estate agents or other appraisers. The appraiser should consider these when choosing comparables in the relocation appraisal process.
During the appraisal process of a sales transaction, the estimated market value often falls below the sales price stated in the sales contract. In situations when the estimated market value may be an issue, most experienced real estate agents should be aware that there may be value issues prior to the appraiser beginning the appraisal process. In these situations, if the agent has comparable information available, the appraiser is entitled to accept that information without being in violation of appraisal guidelines, as long as the appraiser is not being influenced or pressured.
In a VA sales transaction, if the appraiser's estimated market value falls below the sales price, the VA requires the appraiser to contact the real estate professional involved in the sales transaction and offer the opportunity to supply comparable information that he or she believes is appropriate. In these situations, the appraiser must consider this additional comparable information, if supplied, but are not required to utilize the additional information if it is the appraiser's opinion that the additional comparables will not have an affect on the estimated market value or that the additional information is not appropriate for the particular appraisal.
There will be many instances where the estimated market value on an appraisal will be an issue. In our appraisal process, we should remain open to the offering of comparable information from other sources, as long as we stay hard and true to our guidelines of not be influenced and/or pressured. The appraiser may find that they have overlooked a legitimate comparable sale or listing that could affect the estimated market value stated in our appraisal.