Can an agent tell the appraiser the contract price or value needed?
Sharing the contract price is fine. On a purchase, the appraiser is supposed to receive the full sales contract anyway. Telling the appraiser the value you need is not. Federal rules and Fannie Mae's appraiser independence requirements prohibit trying to influence the result, though you can share facts, comparable sales and corrections.
The short version: facts yes, targets no
Agents can talk to appraisers. The National Association of REALTORS says agents may talk with appraisers and provide more property information, including a copy of the sales contract on a purchase. Fannie Mae's own FAQ calls real estate agents valuable sources of information.
What you cannot do is try to steer the number. Fannie Mae's appraiser independence rules prohibit attempts to influence the development, reporting, result or review of an appraisal. Federal lending rules say the same thing in more legal words.
Think of it this way. You can hand the appraiser a map. You cannot hand them the destination.
Why the contract price is not a secret
A lot of agents worry that mentioning the contract price is pressure. It is not, because the appraiser already has it.
For loans sold to Fannie Mae, the lender must provide, or make sure the appraiser receives, a copy of the complete, ratified sales contract and all addenda. The lender must also share what it knows about the property, including seller credits, discounts to the price and other financial terms.
The appraiser then has to say in the report whether the contract was analyzed, and explain the results. They also report any concessions the seller or another party is paying on the buyer's behalf.
The contract price is a piece of evidence. It is not the answer key. One buyer and one seller agreeing on a number is a fact about that deal, not a ruling on the whole market. A good appraiser treats it that way, in both directions.
Where the line is
The federal rule is Regulation Z, section 1026.42. It covers creditors and anyone who provides settlement services on the loan, and its official interpretation names real estate agents and mortgage brokers as examples. Banned behavior includes:
- Seeking to influence an appraiser to report a minimum or maximum value
- Withholding or threatening to withhold timely payment because of the value
- Implying that future work depends on the value
- Excluding an appraiser from future work because a value missed a target
- Tying the appraiser's pay to the loan closing
NAR's own advice to agents puts it simply: don't tell the appraiser your client needs a certain value. The same article warns against telling an appraiser they have to use your comps.
Loan officers, take note: this covers refinances too. Mentioning the value you need to make a cash-out work is the same problem with a different loan type.
What you can share, and how to say it
The same federal rule lists things that are allowed. You can ask an appraiser to consider more property information, including more comparable sales. You can ask for more detail or explanation of the value. You can ask them to correct errors.
| Say this | Not this |
|---|---|
| Here is a list of upgrades with dates and permits. | We need it to come in at the contract price. |
| These three pendings went under contract last month. Here is why they fit. | You have to use these comps. |
| We received five offers. Here is the range. | The buyer will walk if it is short. |
| The tax record shows the wrong bedroom count. Here is the permit. | The last appraiser got a higher number. |
One more detail from Freddie Mac guidance, cited by NAR: information from an interested party has to be verified by disinterested third-party sources. Bring documents, not adjectives. In my experience, a clean packet with dates and sources gets read. A sales pitch gets filed.
Why the rule protects your client, too
It is easy to see appraiser independence as a hurdle. I see it the other way around. An appraisal that bends to a target is worth exactly nothing to the buyer, the lender or the next owner.
Your buyer is about to borrow a lot of money against this house. If the value only holds up because someone asked nicely, that buyer is the one who finds out at resale. Independence is the reason an appraisal means anything.
What I see in the field is simple. The agents who get the most out of an appraisal are the ones who make the evidence easy to find. They know the upgrades and the dates. They know which nearby sales had a view, a busy street or a converted garage. They tell the appraiser what they know and then let the sales do the talking.
The agents who bring a target number tend to bring nothing else. That is not a strategy. That is a wish with a business card attached.
After the report is done, go through the lender
Once the appraisal is delivered, the rules shift. Under the appraisal profession's standards (USPAP), the appraiser can discuss results only with the client and people the client authorizes. On a mortgage, the client is usually the lender, not you.
NAR's guidance is that to ask for corrections, an agent must go through the client, typically the lender, as the middleman. The client can then choose to pass new data to the appraiser.
In practice, that means a reconsideration of value request, sent to the lender, with:
- The specific error or missing sale
- Addresses, contract and closing dates, and prices
- A short reason each sale fits the subject
- Supporting documents, such as permits or MLS sheets
Calling the appraiser to vent feels good for about four minutes. A clear request through the lender is what actually gets a second look.
Key takeaways
- Sharing the sales contract is allowed, and the appraiser should already have it on a purchase.
- Telling an appraiser the value you need is prohibited influence.
- You can share property facts, extra comps and corrections, with documents.
- After the report is delivered, send requests through the lender, not the appraiser.
People also ask
Can I meet the appraiser at the property?
Yes, in most cases. Use the time to hand over facts like upgrades, permits and recent sales, and avoid talking about the value you hope to see.
Is it illegal to tell an appraiser the value needed?
For people covered by Regulation Z, including real estate agents and lenders on a covered loan, seeking to influence an appraiser to report a minimum value is prohibited. Fannie Mae's rules prohibit it too.
Can I send the appraiser comps?
Yes. You can ask the appraiser to consider more comparable sales. The appraiser decides which ones to use.
Sources
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