Understanding the Appraisal Process: What New Mexico REALTORS® Need to Know

At the Silver City Regional Association of REALTORS® (SCRAR), we’re committed to supporting both new and seasoned agents as they navigate every stage of the real estate transaction. One area that often creates stress for clients — and challenges for new agents — is the appraisal process.

The National Association of REALTORS®’ YPN Lounge recently published an excellent article, What Agents Need to Know About the Appraisal Process, and we’ve adapted some key takeaways with a New Mexico focus to help our members succeed.

What an Appraisal Really Is

In New Mexico, as elsewhere, an appraisal is an independent opinion of value prepared by a licensed or certified appraiser. They follow USPAP (Uniform Standards of Professional Appraisal Practice) guidelines and must remain objective.

For REALTORS® in Grant, Luna, Hidalgo, and Catron Counties, this means:

• An appraisal may not always match list price or contract price.

• Unique properties (think historic Silver City homes or rural acreage) may require extra context since comparable sales can be scarce.

SCRAR Tip: Familiarize yourself with how appraisers handle rural properties, water rights, and land improvements, which are common features in our region.

Communicating With Appraisers

Contrary to popular belief, agents can and should communicate with appraisers. What’s allowed? Sharing facts, not opinions. That includes:

• A list of upgrades or remodels

• Recent comparable sales

• Special details about the property (energy-efficient systems, irrigation, outbuildings)

SCRAR Tip: Create a simple “Appraisal Info Sheet” for every listing. Include upgrades, HOA/condo docs if applicable, and any rural considerations like well/septic records.

Why Values Differ

In New Mexico markets, appraisals may vary widely due to:

• Timing of comps: A sale in June might look different by September in a shifting market.

• Rural boundaries: “Neighborhood” can be loosely defined when properties are miles apart.

• Unique property features: Horse facilities, historic adobe construction, or large tracts of land often require extra explanation.

SCRAR Tip: Use your local expertise! Point out comps or trends that an out-of-town appraiser might overlook.

When the Appraisal Comes in Low

A low appraisal doesn’t always mean the deal is dead. First, review the report carefully. Were important comps missed? Were upgrades documented?

If needed, request a Reconsideration of Value through the lender, supplying additional comps or data.

SCRAR Tip: Always keep backup comps ready in case you need to contest a low value. Rural markets often have fewer sales, so every detail counts.

Watch for Red Flags

Always confirm that the appraiser is licensed in New Mexico and familiar with the property’s location. Use the Appraisal Subcommittee registry to double-check credentials.

Be wary of any appraiser who suggests “picking a number” — that’s a violation of USPAP and could compromise your transaction.

Best Practices for SCRAR REALTORS®

• Be present at the appraisal: Make sure the property is accessible and presentable.

• Invest in education: Consider NAR’s Pricing Strategy Advisor (PSA) certification to boost your skills.

• Document everything: Share property info via email for a clear paper trail.

Why It Matters in Southwest New Mexico

For our clients — whether buying a Silver City bungalow, a Deming ranch, or land in Catron County — the appraisal can make or break confidence in the deal. As REALTORS®, the more we understand and prepare for this step, the better we serve our community.

At Silver City Regional Association of REALTORS®, we encourage all members to continue growing their knowledge and professionalism. Supporting each other through these challenges helps strengthen our local market and maintain the trust of the clients we serve.