Blog Category: appraisal problems

picture of a safe in a house

Appraisal Challenges

In my experience, there seems to be a lot of confusion about appraisals. I hear a lot of misstatement about how appraisal values are determined. If an appraisal comes in below the agreed upon sales price there is usually a lot of push back, anger, and harshly worded statements about the intelligence of the appraiser. Many sellers, some buyers, and even some realtors use methodology and data that is not accurate. The reality is that there is a way to challenge an appraisal that is quite simple. Read More

evaluation

Appraisal Problems-Go With A Local Lender To Avoid Them!

I have blogged about appraisal problems many times in the past. I am not going to repeat those posts. Maybe the data below will carry more weight than my opinion. It is fresh out of a thorough and expensive study that I have cited on this blog recently. I will cut and past comments directly from the study that quotes Realtors. I will let their comments speak for themselves. Read More

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

evaluation

Low Inventory = Low Turnover = Fewer Comps = Appraisal Problems?

I have lately had a few appraisal problems that I hope does not turn into a trend. The inventory in the DC Metro area is at the lowest point it has ever been since these sorts of inventory statistics have been tracked, starting 16 years ago. The problem, which is far from alarming at this point, is that little inventory means there are not as many sales as there could be. This means there is not as much turnover as there could be. Less turnover means when a house does sell and the appraiser goes looking for recent comparable sales to support the purchase price, there may be a problem finding enough comps to support the purchase price.

Read More