Blog Category: appraisal problem

Houses Neighborhood Landscape

Appraisers Need To Live In The Neighborhood?

I told a realtor once that appraisers do not appraise a home, data does. I was trying to respond to their over-hyped level of concern about where the appraiser lives or works. Realtors’ hope that the appraiser will have some sort of intimate knowledge about the subject property’s market area, only by living nearby. Read More

long and winding road

Buying A Home In Falls Church VA And The Appraiser Comes From Cumberland MD?

Is it a problem when buying a home In Falls Church VA and the appraiser comes from Cumberland MD? I am working on an interesting loan that will make for a good case study someday, and I think homebuyers and Realtors will find it interesting too.

I am doing a loan for a homebuyer to buy a single family detached home in Falls Church, Virginia. The sales price was a little over $500,000 and the new loan is a Conventional Fixed rate 80% loan-to-value loan, which of course means we are subject to the HVCC rules. So I ordered the appraisal from the bank’s Appraisal Management Company (AMC).

For once, the appraiser was local, from Falls Church, VA so we all figured this appraiser would know the local marketplace and that we would be getting an accurate and fair appraisal. But the appraisal came in several weeks later at a price approximately $35,000 lower than the sales price. The seller was angry, the Realtors were upset, and the buyer was confused. Read More