A helpful form for agents and sellers to provide to appraisers

A helpful form for agents and sellers to provide to appraisers

List of updates and renovations for appraiserIf you’d like to be able to assist your appraiser in doing their job better, then the information I provide here is for you. With the implementation of the Uniform Appraisal Dataset (UAD) in recent years appraisers are responsible for including specific information pertaining to updates and renovations to the property being appraised within the report and today I’m providing you with a helpful form for agents and sellers to provide to appraisers so that they comply with the guidelines.

Why do we need this information?

Appraisers are required to report the most accurate information about the subject property, including its condition and any updates or remodeling the property has had. These types of improvements made to the house are directly related to the home’s effective age which I have written about in the past.

Depending on the extent of updates and remodeling the effect on the condition of the home can be substantial. This can reduce the perceived age of the house which can help its market value. Adjustments to the sales comparables for differences in age and condition are made if the comparables are different from the subject.  By being provided with accurate information regarding these improvements the appraiser is better able to choose the most appropriate comps for use in the appraisal report. If a home has had significant renovations the appraiser should choose sales that are more similar in effective age and condition even though they may vary in actual age.

The bottom line is that this information helps the appraiser create a more accurate report which also contributes to a more accurate final opinion of value for the subject property.  I’ve developed a form that either real estate agents or sellers can use to describe the work that has been done to their home so that the appraiser will have more accurate information to work with when performing the appraisal. You can download the property information questionnaire here. The image below is a preview of what it looks like, which you can also click on to download.

Property Information

 

How to use this form
  • Save and print out this form for all of your listings.
  • Share this form with all of your real estate agent friends so they can use it with their listings as well.
  • Have the owner/seller fill out the form to the best of their knowledge. If they need to add a sheet to provide more information, feel free to do that.
  • If the cost of the updates and renovations is known it can be added, however it’s not necessary.
  • Give the form to the appraiser when they visit the house for the appraisal inspection, that way they will have the information while working on the appraisal and will not have to waste time getting it later, which can hold up the appraisal.

This form is pretty straight forward and easy to fill out so I hope that it is helpful to agents and makes their jobs a little easier.

Question

Is there anything else you can think of that should be on this form? Feel free to leave your suggestions in the comment section, and as always thanks for reading.

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Comments

  1. Nice job. I use a form regularly, and it’s been a huge success. This looks great!

  2. Thanks Tom – This is one of those things that I have wanted to do for a long time but never get around to. It is a great idea. I would also include a field labeled ” Approximate Cost” and maybe another field labeled ” Building Permits – Yes / No”. You have motivated me to do this not only for sellers and agents but also to email to homeowners for refi and non-lender clients after receiving an assignment but to be completed prior to the inspection.

    • Thanks Tom. Great idea on not only providing it to sellers and agents but to all homeowners who you are doing an appraisal for. I have found that asking them this information at the time of setting up the appointment gives them more time to think about everything they have done to their home over the years. If I ask them for the first time when I am at their home they usually can’t remember everything.

  3. This is a great idea Tom. Rather than extract this information from the homeowner or realtor at the time of viewing the property, get it all in writing from them. One thing you might consider adding is the Property Management contact information for the HOA info required for condos. Thanks for providing us with another nugget of wisdom.

    • Thanks for the great suggestion Mark. Looking up the property management contact info. can be frustrating and time consuming at times so that is a great suggestion and one I will add.

  4. Thanks Tom for the form. It is a great idea for homeowners to be proactive and share all the information about updates made to a home, costs, and timelines. Not all appraisers will ask questions, so I say to start the conversation and it might lead to a more accurate conclusion.

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