1,502,998
In my experience in selling homes in Ventura and Los Angeles Counties, CA the appraiser is given a copy of the contract by the bank/lender. It's part of the appraisal order package. They look at it not only for the purchase price, but for other contract items like concessions, included appliances, seller credits, amount down, etc. All of that factors into the appraisal, in my experience.
Personally, I have zero issue with the appraiser knowing what the contract price is. The vast majority I've worked with want to do their best and knowing the target helps them. They still might not bring it in, especially in our rapidly appreciating markets these days.
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Tammy Lankford,
Eatonton, GA
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Shayne Stone
Fulshear, TX
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Candice A. Donofrio
Fort Mohave, AZ
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John Juarez
Fremont, CA
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Joan Cox
Denver, CO
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Lyn Sims
Schaumburg, IL
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Ernie Steele
Lebanon, PA
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Jeff Dowler, CRS
Carlsbad, CA
628,764
Banks provide the contract to appraisers, I never have. As a listing agent I normally meet the appraiser to let them in and fill them in on what kind of activity the property had and answer any questions.
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John Juarez
Fremont, CA
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Carla Freund
Raleigh, NC
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Joan Cox
Denver, CO
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Lyn Sims
Schaumburg, IL
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Brenda Mayette
Glenville, NY
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Margaret Rome Baltimor...
Pikesville, MD
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Shayne Stone
Fulshear, TX
3,345,091
It is like an open book test ... and I know many people who easily fail them.
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Fred Griffin Florida R...
Tallahassee, FL
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John Juarez
Fremont, CA
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Brenda Mayette
Glenville, NY
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Buzz Mackintosh
Frederick, MD
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Shayne Stone
Fulshear, TX
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Kathleen Daniels, Prob...
San Jose, CA
1,543,634
Never given one a contract, never will unless my client asks me to; I can't control the buyer or selling agent though. I'm babysitting 70% of the selling agents with less than 14 years experience as it is. There's a 7 yr to 14 year tantrum factor I'm seeing the last 2 years. 🙄
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John Juarez
Fremont, CA
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Brenda Mayette
Glenville, NY
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Shayne Stone
Fulshear, TX
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Thomas J. Nelson, REAL...
La Jolla, CA
5,868,482
Earlier this year with offers coming in WAY over list -- it was very helpful for the appraiser to have the appraisal. They knew the purchase price the buyer was willing to pay. Also, agents were bringing all the other offers to support that is what the public was willing to pay for the property.
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John Juarez
Fremont, CA
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Carla Freund
Raleigh, NC
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Shayne Stone
Fulshear, TX
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Buzz Mackintosh
Frederick, MD
3,854,886
Do we have a choice? We do not.
So the appraisal is the target the appraiser is trying to reach after seeing the contract!
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John Juarez
Fremont, CA
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Lyn Sims
Schaumburg, IL
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Ernie Steele
Lebanon, PA
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Shayne Stone
Fulshear, TX
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Buzz Mackintosh
Frederick, MD
1,052,211
WELLLLL . . . 'Someone' bought the property for X dollars.
I think the appraiser should know that.
Market value is what one is willing to pay and one willing to take, right?
(I know, except when it's not) . . .
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Debra Leisek
Homer, AK
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Shayne Stone
Fulshear, TX
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Fred Griffin Florida R...
Tallahassee, FL
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John Juarez
Fremont, CA
2,061,756
I have always felt that providing the contract to the appraiser was cheating. They should have to come up with the value the same way that we do... by looking at recent solds, contingents and actives.
But while we have to determine how much we could sell the property for... the appraiser's job is slightly different, they simply have to conclude if there's any support in the market for the price we've acheived.
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Shayne Stone
Fulshear, TX
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Fred Griffin Florida R...
Tallahassee, FL
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John Juarez
Fremont, CA
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Candice A. Donofrio
Fort Mohave, AZ
1,311,397
In most cases, the lender provide a copy of the contract to the appraiser. I have actually had an appraiser ask me for a copy on occasion. Yes, I do provide it. In purchase transaction, the appraiser's job is to determine whether the value of the collateral is in line with the contact amount. It is not to give an out-of-the blue valuation. Why do you think most appraisals come in at the contract price?
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Shayne Stone
Fulshear, TX
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Fred Griffin Florida R...
Tallahassee, FL
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Joan Cox
Denver, CO
901,535
The lender provides the appraisal to the appraiser. If the market (buyers) determine the value of a home, wouldn't it make sense for the appraiser know what the market (buyer) is willing to pay?
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Shayne Stone
Fulshear, TX
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Fred Griffin Florida R...
Tallahassee, FL
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John Juarez
Fremont, CA
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Joan Cox
Denver, CO
851,242
It reinforces my cynicism of appraisals...
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Shayne Stone
Fulshear, TX
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Fred Griffin Florida R...
Tallahassee, FL
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John Juarez
Fremont, CA
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Lyn Sims
Schaumburg, IL
1,844,271
Lenders give them the contracts, rarely have I brought one to them. I think they should 'be on their own' & determine the price but that's not really how the world works. I bring comps & floorplans to them to make their job easy.
I do tell them 10 offers, etc to mention buyer appeal.
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Shayne Stone
Fulshear, TX
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Fred Griffin Florida R...
Tallahassee, FL
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John Juarez
Fremont, CA
921,504
My role is to help the appraiser reach the goal most benefical to the person who hired me.
Comps, contract,tangible assets, cost of improvements, trends and stats all are benefical to aid the appraiser reaching the right outcome without breaking a sweat.
Is that not why people hire Full Service Realtors?
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Candice A. Donofrio
Fort Mohave, AZ
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John Juarez
Fremont, CA
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Lyn Sims
Schaumburg, IL
5,216,398
Since the lender orders the appraisal it is up to them and many provide a copy of the contract. Back in the day of the Savings and Loan's inhouse appraisers had a copy of the contract. Their role, hit the target. Some of the adjustments were comical. Not much has changed.
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Shayne Stone
Fulshear, TX
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Fred Griffin Florida R...
Tallahassee, FL
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John Juarez
Fremont, CA
1,197,072
Not a fan but what is, can not be changed. Not a level playing field.
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John Juarez
Fremont, CA
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Shayne Stone
Fulshear, TX
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Peter Mohylsky, Beach ...
Miramar Beach, FL
427,257
I see your point, but I do realize there can be much more in the sales contract than just the sales price, just like Ryan Huggins - Thousand Oaks, CA mentioned.
Additional lots, personal property, mineral rights, lack of mineral rights, water rights, closing costs. There are a slew of items that can influence the price and the comps an appraiser uses to value a property.
Contract or no contract, an appraisal should be able to hold its own. Regardless of the contract price, the comps are going to be the basis of the appraiser's opinion of value.
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Ryan Huggins - Thousan...
Thousand Oaks, CA
2,684,009
The Lender provides the contract to the Appraiser. They've been doing it forever.
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John Juarez
Fremont, CA
7,836,129
When I was a VA appraiser, I never received or requested a copy of the contract. However, that information could be very helpful in the current market.
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John Juarez
Fremont, CA
6,393,154
Its up to the bank what they want to provide to the appraiser.
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John Juarez
Fremont, CA
763,883
129,698
637,434
It can work both ways. One of my buyers had an accepted offer way below the appraisal. The seller was not happy with the listing agent!! LA tried to get me to give up part of my commission to make her seller happy! Yep, I can't believe that either.
417,221
To order an appraisal through an AMC or RAC (independent appraisal managment company like Nationwide or LVS they require the purchase contract on a purchase as sometimes buyers or sellers have personal property in the contract, which is excluded. I provide the plat map and prelim. I call the listing agent and ask them to meet the appraiser who has their phone and email and provide a paper sheet of the comps they believe are best choice. I also ask if there is a carbon monoxide and smoke detectors in the appropriate spots, how the water heater is strapped... and offer how to get that complete BEFORE appraiser arrives to avoid extra costs of reinspection and delays. I'm allowed zero contact with the appraiser so it is listing agent's opportunity to shine and get them in fast. Why do you think it is bad to provide the contract/RPM? The appraiser looks up how it is listed online.
2,781,163
Bartering is not out of the question and I have learned that really want that contract too Shayne Stone
3,164,269
It's not a matter of my or your "thoughts". The appraiser has to sign something saying he's reviewed the contract.
And in the case of a loan the appraiser's job is NOT to assign value to a property, his job is to justify the collaterial to the lender. The buyer pays as part of the loan process but the appraisal is for the lender, not the buyer, not the seller.