What Is Appraised Value?

In my world they are using appraised value. Haven't had issues unless appraisal comes in a lot less the sales contract.

The new appraisal guidelines are kicking us in the rear. Getting an appraiser assigned at random from out of the area is a big problem, They use comps based solely on square footage number of bed and bathrooms distance to subject and closing date. They have never been to the comps or even driven to the area of the comp. We end up getting a home in great shape in a good location compered and given the same value has a run down home that is in a bad location just because of the homes look similar on paper. No difference in value for flooring in great shape for carpet that has dogs and cats using the bathroom on them for years. No difference for a new roof verses a wore out leaking roof. No difference for custom cabinets with granite count tops verses the cheapest out of the box cabinets with laminate tops. The list goes on.

Now appraised value is just luck of the draw on which appraiser you get. I have seen two appraisers appraise the same house in the same condition less than 30 days from each other and the value vary 30%.

Good Evening Dave

Thank you for the clarification. Very important for buyers and sellers to know and understand. Have a great day