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This is Gina Mullen with Gina Mullen Realty, today we're going to talk about the appraisal process. 

So when you go to buy a home and you are getting financing on that home, your lender is going to require an appraisal on the property. We are having a difficult time sometimes with our luxury new construction in some of the areas in and around the Dallas Fort Worth metroplex. A lot of areas that were at one time mostly rural with small one story, three bedroom, two bath ranchettes now are being purchased and we are having large luxury homes that are being built on them. When it comes time for the appraisal, it gets to be a little difficult comping out those properties. And so the appraiser a lot of times has a very difficult time finding the comps that are needed in order to be able to come back with an appraisal that will be anywhere near what you're asking to be loaned from the bank.

One of the jobs of a real estate agent is I will call the appraiser, or have the appraiser call, me and I will walk them through some of the comps in the area so that they have properties that they can work with that will get them to the appraisal that the buyer needs them to be. We have a lot of off MLS transactions that happen with luxury new construction. When you do an interim home construction loan, it is usually not in the MLS. The land sale is usually in the MLS, but the actual build job is not, so the appraiser doesn't have access to those. So a lot of times what we can do is we can go to a builder and we can ask the builder to provide other homes that they have built in the area and what the sales price of those homes where. These can then be provided to the appraiser so that the appraiser can come up with actual comps that are similar to the type of home our clients or building so that they can then secure the financing that they need to build the house.

These comps, however, need to be gotten from people that are working in the industry in the area, and a lot of times your average person just does not have access to those builders or those people who would be able to provide the information needed to the appraiser in order for him to be able to comp it out as best possible. When I am talking a significant difference, we may have someone who is building a $2 million home, but the appraiser can only get it to $500,000 because based on the homes that had sold in the last 180 days, they may have all been older ranchette homes built in the 1970s that were small on a smaller piece of land, but there may be other homes in area, again, that were built, they're just not in the MLS for the appraiser to pull. So a real estate agent can really assist with the appraisal process and make sure that the appraiser has all the information that is needed in order to appraise your home properly so that you can get the funds you need to build your dream home. 

This is Gina Mullen with Gina Mullen Realty. Thank You.