Good comps, bad comps

Inman News columnist Bernice Ross writes today about the importance of getting good comparable sales to an appraiser so that a low valuation doesn't derail a sale. Appraisers who aren't familiar with your area may choose properties that are nearby but in different markets, she says, or they may not know about properties that are still under contract. As Ross notes, the best time to deal with these issues is before the appraisal is done.

At the NAR convention in New Orleans last fall, a Rels Valuation executive shared this statistic: only about 20 percent of disputed appraisals result in increased valuations, and the average increase is just 5.2 percent. If you'd like to read more on the subject from the point of view of appraisers, see the Inman News story on the NAR panel discussion, "The Low Appraisal: Recourses and Remedies."

The appraisers on the panel offered tips on finding comps that won't be laughed at. Don't, for example, expect an appraiser to accept at face value a house that's been remodeled as a comp for a house that has not, or a new home as a comp for a house that's 20 years old.

Of course, all such tips are offered with the goal of achieving an accurate appraisal -- not pressuring appraisers to hit a predetermined price.

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