Low appraisals that don’t reflect rising markets are ruining deals!
Low Real Estate appraisals have become such a common occurrence nowadays. Unfortunately when this happens, these low appraisals have the potential to compromise deals, if not kill them all together.
To make matters worse, many lenders have taken to using appraisal management companies, which often hire appraisers who do not know the local markets they are appraising well enough. This in my opinion, is where the issues lies, these appraisers may prefer to err on the safe side, setting prices too low.
But with every challenge, there is always a solution. At the very least learn from it and prepare accordingly.
As an educated Real Estate Agent, knowing the ins and outs of the area and property appraised is crucial. We need to make sure comparable sales used by these appraisers are applicable to the property at hand. Good comps involve sales from recent months of similar homes nearby. From that list, you want to make sure all homes are of similar living quality.
If the property at hand is located on a quiet bright street, you want to make sure and get rid of any comparables on a noisy dark corner which may be worth less than the identical home on the quieter spot. All these little details are crucial to point out and review during the appraisal report.
I hope this helps your buying and selling process. Read more about this very common topic in Real Estate.
NW Real Estate