Special offer

It's Not the Appraiser's Fault

By
Real Estate Agent with 410-935-5844 Office 634480

It's Not the Appraiser's Fault

 

A buyer and a seller agree to a price on a property, sign the contract, and, then the appraiser comes back with a report with a value that is lower than the contract price.

 

Was the seller asking too much for the property, which most sellers do?

 

Did the real estate agent prepare a comparative market analysis to show the seller what a reasonable price would be?  

 

Did the real estate agent take the listing even though the seller wanted to list well above market value?

 

Did the buyer's agent prepare a comparative market analysis to show the buyer what a reasonable price would be?

 

Did the buyer, or the seller, even have an agent representing them?

 

Knowing that a borrower can default on a loan, is it likely that a lender would want to give a loan for more than a property is worth?

 

When the appraiser went to the house, did either of the agents, especially the seller's agent, also, go to give information to the appraiser, such as comparable sales that they had used, or to make certain that the appraiser was aware of all improvements and updates to the property?

 

The appraiser has the same source for finding comparable sales as the agents do such that the appraised value should not be a big surprise.

 

Comments (1)

Jacob Jamison
Zenith Realty - Joppa, MD
Exclusive Buyer Representation

Ron,

I agree.  If the comparative market analysis is done up front and the seller is reasonable, then there should be no appraisal problem.

Dec 14, 2016 11:18 AM