The Berra's Lake of the Ozarks Real Estate Blog

Don't Be Mad at the Appraiser
August 14th, 2014 9:16 AM

 

I hear so many times when people are buying property or refinancing their home that "the appraiser gave me a low appraisal".

It may be lower than you want, lower than you need or lower than you think, but the appraiser is an unbiased professional who has to support an opinion based on fact. It is their interpretation of a tremendous amount of market data, not yours. The appraiser does not know you and has no interest in any type of predetermined value. They are paid a fee for the appraisal regardless of the final value estimate.

Other people say that it is taking "forever" to get the appraisal completed. Appraisals do take substantially longer to complete than they used to. When I got into the real estate business about 100 years ago, an appraisal consisted of a photo of the subject property, the addresses of a few homes that sold in the neighborhood, and a value estimate. Now the reports are 25,30,35 and more pages. There are no less than three comparable sales used to establish value, with many reports containing six and seven comparable sales. Many lenders want comparable listings used in the reports. There are exterior photos, interior photos, comparable property photos, and photos of any adverse or beneficial influences in the area. Research is required on the history of sales dates on the subject property and the comparable properties. There is zoning research, flood plain research, homeowners association info, values and concessions trends, marketing times and countless other guidelines that must be followed.

The appraiser has far more work to do than ever before, therefore it may take a bit more time to complete the report. With accuracy being paramount, a little extra time is worth it. 



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Posted by Mike and Susie Berra on August 14th, 2014 9:16 AMPost a Comment

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