| Real Estate Info by Lisa Hill, Daytona Beach Native, and REALTOR®. "THE SMART CHOICE!" |
This is post #3 in my "Real Estate Professionals Working Together" series. My other two posts in this series are "REALTORS® and Closing Agents Working Together" and "REALTORS® and Mortgage Professionals Working Together".
For this post, we're going to discuss REALTORS® and Real Estate Appraisers Working Together. As a real estate buyer or seller, you probably know that an appraisal is required if a buyer needs mortgage financing, in order to buy real estate. And you probably also know that real estate sellers can get an appraisal before listing real estate, to help determine value. You may even know that when a real estate buyer applies for their mortgage, it's the mortgage lender who gets to choose the appraiser. What you may not know is that appraisers sometimes call on REALTORS® for help when they're determining real estate value.
Now you may be wondering why an appraiser would need any help from a REALTOR®. After all, isn't the appraiser the most knowledgeable party for determining real estate value? Well of course they are! That's their main profession. But sometimes there are extenuating circumstances in real estate sales, that are not always noted on the tax assessor's records, or in the MLS. (These are the Real Estate Appraiser's sources of information... among others.) And with sales being much slower than they were during the boom years of the real estate market, sometimes the appraiser can't find enough comparable sales to get a good idea of the true market value of a particular property. So they then call REALTORS® who were involved in sales that are possible comps, but these comps can lack crucial information in determining value.
The best example of how information can be missing is when a seller contributes money toward a buyer's down payment. This essentially means that the sale price according to the contract, is not the true sale price. Make sense? If the seller didn't actually receive the amount of money indicated on the real estate contract, then that may or may not be
a comp for the "subject property". The contract will state the sale price, and an addendum will be added to the contract, which states how much the seller will "give back" to the buyers, to help with their closing costs. So in reality, you have to subtract the amount the sellers gave to the buyers, to determine the real sale price. And that information is not in the local MLS, or in the tax assessor's records. So the appraisers call around to REALTORS who were involved in recent sales, and ask if any concessions were made, or if any special circumstances were involved.
So now we find another way that different real estate professionals work together. When you look at all the different arms of the real estate industry, and the many people who are involved in each sale, you see that the industry professionals are more closely linked that it would seem.
If you're a real estate buyer or seller and would like to buy or sell real estate in Port Orange FL, I'd love to help. Make a Smart Choice and contact Lisa Hill for all your Port Orange real estate needs.
Visit my primary web site at www.DaytonaBeachRealEstateSales.com.
You mean to tell me that Realtors work along with other professioanls in the process to buy and close on a home. Great series Lisa, I think many people fail to realize just how many of us are working together for a common goal.
Excellent series Lisa - Recently at our monthly Realtor lunch, we had 4 of the local appraisers as guests. One of the things that they stressed to us was the importance of having accurate info in the MLS. Our MLS allows for comments about the sale when it is closed. This is a great place to let them know what kind of concessions were involved in the sale.
JL- I think the average consumer doens't have a clue, as to how much work is done, by so many different people, in order to fascilitate a successful real estate sale.
Jim- That's a good idea. Our MLS doesn't have that.
Excellent post. I hope the public read this. Very educational. Thanks.
Kenneth- I hope they read this whole series. They somehow have gotten this bizarre theory that the different arms of the real estate industry don't get along with each other. It's absurd.