Myth 1: Its harder to appraise in today's market, the world of appraising has changed drastically in the last few years.
Answer: I've been appraising twelve years, its no harder to appraise today than it was in 1998. The methodology and principals are the same, the market is a little different. The HVCC has not made it any harder for appraisers to work. The HVCC is a lender directive and not an appraisal one. In fact, now that we don't have mortgage brokers trying to influence our values by threatening us with future work if we don't hit the number, its much easier.
Myth 2: Appraisals are opinions, no two are the same.
Yes, an appraisal is an opinion, but it is an opinion based on fact, hard facts. While two appraisals on the same property may differ in the final number, they should be in the same ball park.
Myth 3: Appraised values do not take into consideration Absorption Rates.
Answer. Er, yes they do. Have you seen the 1004MC form on most appraisal reports? Even before that form was required, absorption rates have ALWAYS been part of the appraisal analysis. Do you know that an appraisal has to include the Exposure time also? Don't let anyone fool you into thinking that appraisers only deal with historical data, have you read about the principal of substitution?
Myth 4: Appraisers think that all Sales agent are dumb sleazy cheese balls, and Sales Agents think that appraisers pull their numbers out of thin air, and purposely come in low to scupper their deals.
Answer. While its true that some appraisers think Sales Agents are dumb sleazy cheese balls, not all do. It is also true than some agents think appraisers are out to scupper their deals, not all are.
The truth is, there are a LOT of uneducated, unknowing people out there who should not be selling houses. However, in the same breath, there are a LOT of appraisers out there who don't deserve the license they have. All agents and appraisers are not the same. The need for educated, knowledgeable and professional Agents and appraisers is at an all time high. A fancy suit and a fancy car does not make you a good agent or appraiser. The criteria to become an appraiser has been increased, this is good for the business. To be an appraiser in TN, you have to have at least an associated degree, at least two years apprenticeship, 2500 hours of appraisal hours, pass a State Exam, and then pass an interview with a State Commissioner. I got my sales agent license through a mail correspondence course and a final exam. This HAS to be increased and made more difficult in the state of Tennessee. I am a Certified Appraiser, a Licensed Sales Agent, and a member of the National Association of Realtors.
There is so much false information on this site from so called Agents and Appraisers. You really should think long and hard before you make a post here. Its on record. It would benefit the entire world of Real Estate if Sales Agents and Appraisers were crossed trained so that the were proficient in both areas. A great sales agent doesn't neccesarilly know squat about appraising, and vice versa.
Is property a foreclosure? Short Sale ? Is it distressed home with many repairs required?
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
I would have to agree with the answers you got so far. This is a sales tactic that the seller hopes works toward their advantage. Remember its a buyers market right now there are lots of homes for sale. If you look around you can find a larger size home being sold for the same price as a smaller home in a different area of town.
Listing a house for sale below the appraised price is a sales tactic. It is designed to make the buyer think that a deal can be had. Wouldnâ€™t you like to buy a house for less than it â€œtrue valueâ€? That assumes that you are willing to believe that an appraisal is the absolute truth about the value of a property. Appraisals are like the opinions you get at a sports bar for the likelihood that the S. F. Giants will win the upcoming World Series. No two alike.
Sorry, appraisers, but the world of appraising properties has changed drastically in the last few years. Not your fault, I know, but appraisers seem to be using dart boards to come up with prices these days and their aim is usually on the low side.
You should ask your agent this question because it is easy for him/her to answer. Since you asked it here, I wonder if you have an agent. You should! Questions like this one and many more can be put to your agent for the quickest answer. Make sure you get an experienced local Realtor to help you. As a buyer, you should know that the fee for your Realtor is most commonly paid by the seller. Ask you Realtor how that works, also.