Home Buying in Forest Hills>Question Details

rssraj, Home Buyer in 11375

Buyer getting appraiser before making an offer

Asked by rssraj, 11375 Tue Feb 7, 2012

Folks - I'd like to hear from other listing agents about how you folks and sellers think about a buyer asking to get a private appraisal before making an offer on the property. I know about the bank doing its own appraisal but a pre-offer appraisal is just to judge the true value of the property. I do have my broker's opinion of course but want to go beyond that

Is this a rarity or do you see it sometimes?

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6
I've seen this happen before, but it doesn't happen often. In a unique situation were a buyer wants to get a neutral opinion on value from a licensed appraiser in order to determine his/her offer. It makes sense if you ask me...

At the end of the day, every transaction is different in some way, shape ro form!
1 vote Thank Flag Link Fri Feb 24, 2012
I recommend this. Why? Because if you are placing a large amount down, the bank will not care. I've appraised several homes (drivey by appraisals) when the home owner has placed up to 50% or more down. Here is what happens. If the home is listed at $200,000 and you make an offer for $180,000. The bank does the appraisal and it comes in at $150,000. Since you are putting $90,000 down, the bank will give you the loan and you will be paying $30,000 over market value for your home. This, my friend, is why you should get your own appraisal if you are putting a large amount down. And you may even consider this for a second value just to be sure. A 400 appraisal is much, much cheaper than losing that kind of money.
0 votes Thank Flag Link Fri Feb 24, 2012
Hello,

A buyer can pay for their own appraiser before submitting an offer on a home. An appraisal is the professional opinion of the appraiser. I have seen different appraisers come up with different values on a home. Your lender most likely will not be able to use your appraisal because they have their approved list of appraisers. If you choose to order your own appraisal, get some recommendations from real estate professionals in your area to get a good local appraiser to work with.

Thanks,
Carol Perdew
Prudential California Realty
(209) 239-7979
Carol@PerdewHomes.com
http://www.CentralValleyHomes.com
DRE 985176
0 votes Thank Flag Link Fri Feb 24, 2012
rssarj,
When you've been in or around the business a while you'll realize that an appraisal is more detailed but no more accurate than what good agents can come up with. In many cases as an agent, I'm in more comparables to my client’s properties than an appraiser is. I've seen the condition of the home in real life rather than just MLS pictures which can hide a multitude of issues, both positive and negative.
The one exception would be a very unusual property or one outside of my expertise. I have consulted with appraisers for properties when comparables didn't seem easy to find and needed to use the best available but then adjust for age, condition, size, acreage or special features.
Appraisals are an opinion of value and contain subjective elements. Two different appraisers will come to two different conclusions in many cases. The true market value of any home is the price that a ready, willing and able buyer and seller come to agreement on.
In my opinion the appraisal is a verification that the terms of the contract are reasonable and the buyer is not taken advantage of. In my experience many appraisals come in at or above value, but those that come in higher are always suspect. If a home is really worth more than the offer, why didn't someone else come in and offer more? Provided the home has been on the market for a reasonable amount of time, the price agreed to is the market value regardless of what an appraiser says, before or after the offer.
0 votes Thank Flag Link Tue Feb 7, 2012
rss.....

Why not? It only serves to make a good offer stronger. Buyers do a pre-listing appraisal all of the time and agents are recommending this to help foster accuracy.

From where I stand, all the seller has to do is say "no." Don't we as agents provide buyers with comparison information to help with processing an offer? It's part of the process. What harm could this request possibly do?

If the home is priced as it should be...then there should be nothing to hide......I believe it to be fair and reasonable.

Respectfully,

Bill
0 votes Thank Flag Link Tue Feb 7, 2012
I've never seen this. Frankly, it just seems like a waste of money! Your agent will do a CMA which should give you a very good idea of the value of the home you're interested in. And it's FREE! Besides appraisals aren't always accurate. What happens if you get an appraisal, and it comes in low? Is that a good thing or a bad thing? Are you going to make a low offer based on a low appraisal? What if it comes back high? I guess I'm confused as to what you're trying to achieve. Trust your REALTOR.
Web Reference: http://www.sallygrenier.com
0 votes Thank Flag Link Tue Feb 7, 2012
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