Can appraised values change $53,000 in six months?

Real Estate Agent with Century 21 Adams-Walker

A contact asked me a question today that I honestly could not answer-

She is buying a house that will close Wednesday from another Realtor. The current owner showed the appraisal from six months ago showing the property for $270,000 (divorce settlement). Her Realtor did a CMA that showed the property to be in the $258,000 range. Yet, my contact was getting the property for $217,000 because the seller was relocated overseas and wanted to get out ASAP.

Her appraisal came back today for $217,000. The same price as her sales contract.

Should she request another appraisal? Did the appraiser simply do a BPO and charge $350?

There are no foreclosures in the neighborhood in question. No other property has sold below $240,000. The property is comparible to all in the neighborhood.


Comments (7)

April Hayden-Munson
Brookfield, WI
Brookfield Wisconsin Real Estate

Beth, Many appraisors will only show the value as what the buyer paid for it.  If she really wants a second opinion - or third.... have her hire her own appraisor.

May 12, 2008 04:06 PM
Ron Tarvin
Residential, Investment properties, rehab projects, property management, luxury homes, new construction! - Katy, TX
Broker, Katy, Houston, Cypress 77450,77494,77095

I think that sometimes the appraiser goes out and just makes sure the value of the home covers the value of the loan.  I've seen it happen a few times and it's always odd to me, but has never caused that much of an issue.

May 12, 2008 04:07 PM
Erik Hitzelberger
RE/MAX Alliance - Louisville REALTOR-Luxury Homes - Louisville, KY
Louisville - Middletown Real Estate

April is correct.  But, unless it is affecting her ability to get the loan or the downpayment required, it does not matter

May 12, 2008 04:08 PM
Virginia Hepp - Mesquite NV REALTOR
Desert Gold Realty - Mesquite NV Homes For Sale - Mesquite, NV
Mesquite NV Homes and Neighborhoods - Search MLS

Appraisals from the lender are done to the contract amount.  The lender will need to know that it is worth that.

May 12, 2008 04:11 PM
Patty Carroll
Vancouver, WA

The appraisal that is required from the lender for the loan is usually within a thousand dollars or so to the loan amount. It is strictly for the purpose of the loan.

May 13, 2008 02:02 AM
Bo Buchanan
Kettley Realtors - Oswego, IL

It just goes to show that nothing has changed in the appraisal industry.  There is too much pressure from the banks to get an appraisal on their terms.  Lenders don't want a real appraisal - they want an appraisal that puts the investors at ease and fits into the loan they are giving. 

May 29, 2008 04:49 PM
Pam Pugmire
Silvercreek Realty Group - Meridian, ID
Meridian Idaho Real Estate

The appraisers are just trying to cover their tails, so they don't say it is worth anymore than they have to.  They go right off the contract price! 

Jun 05, 2008 07:48 PM