Non Local Appraisers

Non local appraisers have become more and more common and can have a detrimental effect on real estate transactions. The Washington Post had an interesting article regarding appraisers and their role in real estate transactions. The article is titled Flawed real estate appraisals create problems for buyers, sellers, refinancers – isn’t that the truth! The article sites specific examples of appraisers who are based in another area, one as far as 126 miles away that assigned a low ball value to homes. As agents we are faced with providing comps from the local area and supporting why the value of a home is justified but, sometimes no matter how accurate the supporting documentation is the appraiser doesn’t agree. It's imperative the appraiser be familiar with the local market.

While I think the pendulum has swung from one extreme to the other leaving appraisers hesitant, maybe even scared to appraise a property too "high" where in the past that wasn’t the case at all there has to be some common ground. I’ve been party to a transaction where the value was clearly supported with comps that had all sold in the past month but, the appraiser assigned a lower value and the deal fell apart. The article in The Washington Post provides some good tips on what to do to decrease your chances of a botched appraisal.