Realtor's Guide to Appraisals: Comps, Value, and Negotiation
Appraisals are the most common source of transaction friction in real estate. Understanding how they work helps Realtors prepare better CMAs and handle low appraisals professionally.
What You'll Learn
- How appraisers select comparable sales
- Why your CMA and the appraisal may differ
- What the appraiser looks for on the property visit
- How to prepare your seller or listing for the appraiser
- What to do when an appraisal comes in low
The Full Explanation
When appraisals come in low, CTC Processing coordinates the Reconsideration of Value process with the LO. Realtors who can provide strong comparable sales analysis help support ROV packages.
Frequently Asked Questions
Why does the appraisal sometimes come in lower than my CMA?
CMAs use active listings and recent pendings which reflect current market energy. Appraisals use only closed sales, which may lag the market by 60–90 days in fast markets. Appraiser comp radius and time adjustments also differ from how Realtors select comps.
Can I provide comps to the appraiser?
Yes — you can share a comp list with the appraiser at the time of inspection. Appraisers are not required to use your comps, but a well-documented list with strong justification is considered. Do not try to influence value — just provide factual comparables.
What options does my buyer have if the appraisal comes in low?
1) Request ROV with better comps; 2) Negotiate a price reduction with the seller; 3) Pay the difference in cash; 4) Cancel (if the contingency is active). CTC coordinates option 1 with the LO and AMC.