It seems wherever I go, I am asked about appraisers and the appraisal process. It’s a little known and understood “art form” that can wreak havoc on a real estate transaction and/or give wings to people’s goals and dreams…all at the same time!
Recently I was describing the process in rather great detail (imagine that!, Jeff talking a lot about something!! LOL) to a former client whose child is looking to buy a first home from us. Each time I explain the process, the possible scenarios and likely outcomes I walk away feeling a bit like a carnival sooth sayer trying to predict what someone else may predict! YIKES! Truth is nobody (sometimes even the appraisers) understands the implications of a “less than reliable” report. We simply wait for the number and deal with whatever fall out there may be.
Deals can die or be made much more difficult over a report and yes, they can be made solid as well…That does happen! I always say “numbers don’t lie” and as such I use numbers everywhere in my discussions and presentations to both prospective clients and frankly to most everyone I find myself speaking to! it’s the interpretation of said numbers that is an appraisal…Catch someone on a good day and you’ll get one number, after a rough week or being hammered over another report and WHAM, different number! Really!??
Appraising property really is an art, a process of establishing value that deals with the present and more over the PAST sales (comps)…Sellers all too often want to sell on the high side…Buyers always want to buy on the low side so from the onset…opposing positions that rely on the appraiser to sort it all out. Appraisers use recent sales to establish CURRENT value and nothing more. One just needs to hope the appraiser him or herself has a fair way of adjusting for time, condition, location, size, amenities, upgrade level or lack there of and a whole host of other items that together…make a value. Good Luck everyone! Good Luck indeed!
All said, it’s not that bad…With proper guidance and counseling…from a dedicated professional who is in the market every day interacting with buyers, sellers, appraisers, inspectors, loan officers, attorneys and title agents…You’ll find yourself worrying less about an appraisal outcome as a seller and understanding the possibilities a bit more as a buyer. Work with a Realtor, we do this stuff every day!