Reasons Your Oakland County MI Appraisal May Come In Low
Low appraisals are probably the biggest killer of sales of non distressed homes in the North Oakland County area. There are many reasons for a low appraised value that have absolutely nothing to do with the actual value of the house being appraised. Below is a short list of reasons why a house may appraise low:
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Lack of comparable sales
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Out of the area appraiser
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Bad appraiser
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The amount of distressed sales in the area
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Restrictions on adjustments
The problem with the list above is there isn't much that can be done to change those scenarios.
Things to keep in mind if your appraisal comes in low:
- The seller DOES NOT have to reduce their price to match the appraised value
- Appraised value is just an opinion and does not necessarily reflect the true value of the house
- The appraiser DOES NOT work for you
- Your loan officer doesn't really work for you. He/she has a duty to the lender/investor they sell the loan to
- Appraised value and market value can be two totally different dollar amounts
- Since about 20% of area sales are cash, market value will more than likely trump appraised value
Using the Appraisal Contingency as a Negotiating Tool
Jackie Hawley
ReMax Encore, Clarkston MI
(248) 736-6407
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