All appraisers do not SOLEY rely on area sales
Appraisers have several valuation models that contain influencing elements which can be used based on:
1. Who requested the appraisal
2. Type of property
3. Availability of comparable sales (time limited)
4. Purpose of appraisal
5. Market conditions of that community
6. Replacement cost
7. Area sales (scheduled depreciation/appreciation)
8, Comparable Sales (remote)
9. Adjusted sales
Real Estate professionals use the same methods but also bring into the equation intangible 'quality of life' factors for which a potential buyer WILL pay.
The real estate professional who is relying on the appraised value to validate a sale is leaving the home seller in a very vulnerable situation. This can not be allowed. One should anticipate low appraisal values (the appraisals are rigged but not by the APPRAISER) and have counter measures in place to negate the predictable influence.
Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
Unfortunately many appraisers are very bad at what they do, lazy, and or use different ways of measuring and short measurements end up with lower values. Example: we had a property that we listed that had had three appraisals in the prior 3 years that came out to as low as 1258 sq ft and as high as 1622 sq ft.
If you have gotten a low appraisal it is possible to dispute.
The sales comparison approach is utilized and the the sales that can be used are closed transactions.
In our current market, with prices increasing by the hour and multiple offers, it is very frustrating that the report cannot utilize the pending sales.