As an appraiser and a Realtor, I know both sides of the coin when it comes to properties coming in at value. An appraiser is tasked with providing an opinion of market value, but more specifically it is an opinion of what the property would most likely sell for on the effective date of the appraisal (most often the day of inspection). As I am sure many of you have noticed with inventory levels down, favorable buying conditions we are seeing bit of a rebound in the market, and prices are beginning to tick up a bit, but that creates a problem for many appraisers. I f an appraiser has to base his opinion of value on what has sold, and the market is going up it is often a game of trying to play catch up with the market. Appraisers are not looking to kill anybody's deal, but if their report is not completed thoroughly and the opinions are not well supported with market data, they run the risk of losing clients or worse their license so many appraisers have adopted the conservative approach rather than the accurate approach. Many appraisers feel it is better t error on the side of caution than to expose them self to lawsuits by over valuing a property.
So as agents, what can you do to help your appraiser? First you should always meet your appraiser at the appointment and present the home in the best possible light. Is it clean, are the utilities on and working? Present the appraiser with the comparables you used when completing your CMA. Obviously the appraiser will make his own determination of value, and is competent to do so, but one of the most important steps of the appraisal process is the data gathering step. When I complete an appraisal, I would like to get as much data and information as possible, then when I began writing the report, I can decide which information is good and which is not. Finally, and maybe most importantly, in this market, let your appraiser know how many offers you had on the property, and where they came in at. Paint a brief picture for the appraiser that there was quite a bit of interest in the home. By alerting your appraiser that there were multiple offers, the appraiser will most likely place more emphasis on the active listings in his appraisal than he normally would and it may mean the difference between closing your deal, and having to have that unfortunate conversation with a buyer who does not have the additional cash needed because the appraisal was below contract price.
To see a good illustration of Folsom's Market and how prices and values have moved during the past few months click below
The price per square foot for listings in this area is $178.
The median sale price in March for single family homes is $308,000. The sale prices dropped by -1.59% from the previous month.
The price per square foot for sales in this area is $147.