The Appraisal Came In at What?

By
Real Estate Agent with ProStead Realty Charlotte, NC CRS SRES mitch@prostead.com NC License #115457
The Appraisal Came In at What?

Over the past several years appraisals have obviously been an issue in our declining market. However if the comparables are there to support a value and the appraisal comes in low, what do you do? I guess it depends on who’s shoes you are in and the situation.

As agents we’ve all worn different shoes at different times. Take an example recently though: Appraisal comes in $20,000 dollars low on a $400,000 dollar home just a mere few days before closing. The comps are there to support sales price but the appraisal still comes in low. There was no contesting it. The appraiser nor the buyers would budge.

When requested by the sellers and listing agent to see the appraisal, the lender and buyer refused (belongs to buyer since they paid for it). They wouldn’t even say who the appraiser was.

Should sellers be at the liberty of the appraiser as to what they think homes are worth? The sellers could have said no, but they were in one of those situations (we’ve all seem them) where they basically had to bite the bullet and go through with it, albeit changed their immediate future plans of purchasing another home where they were relocating.

Every time a home is sold, jobs are created. Low appraisals when the comparables are there are certainly not helping our economy any.
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Rainer
432,042
Edward Gilmartin
CRE - Boston, MA

Back when the market was crazy appraisors were too liberal in their appraisals this led to problems...now that home values have fallen all of a sudden the appraisor is too conservative when he should actually be a bit liberal in his appraisals since the market has come close to a bottom.

Jan 02, 2012 02:45 AM #1
Rainmaker
647,343
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Not providing a copy of the appraisal doesn't make sense to me.  

Jan 02, 2012 02:46 AM #2
Rainmaker
384,174
Matt Listro
National Credit Fixers - Matt Listro - Vernon, CT
Your Credit Repair Expert

Mitch,

Great point, this seems to be a thorn in too many peoples side these days, hopefully we see a turn with the new year! Thanks for sharing!

:) Matt

Jan 02, 2012 03:55 AM #3
Rainmaker
466,162
Mitch Muller - Charlotte NC Real Estate
ProStead Realty Charlotte, NC CRS SRES mitch@prostead.com - Charlotte, NC
Certified Residential Specialist

I agree with you guys! And yes, I'm optimistic about the New Year. I saw a lot of improvement in my market in 2011. Happy New Year! M

Jan 02, 2012 11:45 PM #4
Rainer
432,042
Edward Gilmartin
CRE - Boston, MA

Many in the appraisal business are under careful scrutiny since banks are so careful about making quality loans these days. So you can not blame them all the time but the appraisal should be public information. But of course once a buyer is told the home is not worth what he was earlier willing to pay  he or she is long gone.

Jan 03, 2012 04:05 AM #5
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Rainmaker
466,162

Mitch Muller - Charlotte NC Real Estate

Certified Residential Specialist
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