Appraisal Red Flags for Realtors
The Realtor's RED FLAGS for a quick Appraisal review to confirm and or not confirm that theÂ Real Estate Appraisal is creditable.
Review the Appraisal Report Section "Neighborhood".
Reference the local MLS Market Statistics. Did the MLS statistics data support the Neighborhood sections?
A Realtor friend ask me to lookÂ an Appraisal Report. Based on the Appraisal Report Neighbor Section the Red Flags;Â
81% of the housing sales, were below the Appraisal Report predominant dollar amount. The report high dollar amount was 25% below the market high dollar amount.
67% of the housing sales, the average days exposed to the market were below 6 months.
The Neighborhood Report section over 6 month's box was checked.
The market had 5 months of inventory. The over supply box was checked.
The present median values was 1,0722% higher than the prior year
The present average values was 1.0577% higher than the prior year
Decrease in sales 23.83% present year to prior year.
All of the above correct data is available from the MLS data base. It appears the Report Appraiser made a guess at the Neighborhood sections numbers.
In the addenda pages of the Appraisal Report there should be dataÂ to support the report statements and conclusions. There was no addenda support data for the neighborhood
sections in this report.
How would you, the reader, advise my friend?
RE Value Consultant
773 685 8300