Home Selling in 40213>Question Details

Suzy, Home Seller in Louisville, KY

Realtor looked at property & gave comps, appraisel was done for loan to purchase it. Appraisel came in $20,000 less then realtor said & comps.

Asked by Suzy, Louisville, KY Thu Oct 11, 2012

Why & which is most accurate for me to sell my half interest in property at?

Help the community by answering this question:

Answers

11
Jude Birch’s answer
Appraisals are not absolute and have several "parts". You might want to examine the report quite carefully and look specifically at the section on current market value. Compare that section to the realtors analysis - and if the realtor is someone you trust, call and talk about this . . . you want to know what is the current average time on market for properties sold and to weigh the condition of your own home against the market place (the competition - others for sale right now). Also, depending on when you bought the house - the appraisal might be outdated . . . for a purchase right now, a bank would order an appraisal for a buyer and the "comps" would have to be within the last 3 to 6 months only! Unclear about where you are in the process - are you considering selling the house and having this work done ahead of time? or have you listed and sold and now have a low appraisal?
1 vote Thank Flag Link Thu Oct 11, 2012
Okay so the whole situation is as follows: My parents passed away this past year and my brother and I are left to deal with what to do with the family home. We brought in a realtor to look it over, give their opinion as to what we could list it for on the market as is if we decided to sell. My parents home is actually in the 40217 zip code and realtor said as is he would list for $135,000.00 as is, but if some updates were done he felt it could go up for $140,000.00 or more. My brother and I had verbally agreed to go off whatever the realtor came back and said cause he was interested in buying me out of my half but when it came back more then he thought it would he then wanted to get it appraised. So he did so 2 weeks ago and his appraisel came back for $115,000.00 which happens to be just under what he had told me was all the bank said they would approve him for. I am just kinda shocked that these two people would come up with such different perspectives on the same property especially since when the realtor came and looked at the house it didnt have new carpet laid nor the roof redone on the house or garage...where both of those were done when the appraiser came in.
Flag Thu Oct 11, 2012
Good morning! Yes, as someone stated below, the $20K difference really does have to factor in at what relation to the price of the home it is. $20K on $900K is nothing versus $20k on $90K!

Also, keep in mind some Realtors do factor in some "wiggle" room in their comps, though that varies from Realtor to Realtor.

Also, as some have stated, it is also not a science and there can be some difference, once again depending on the price of the home in total!

Let me know if I can be of any help!

Michael Thacker
Realtor
Kentucky Select Properties
0 votes Thank Flag Link Fri Aug 1, 2014
An appraisal is a much more detailed determination of value. With that said, appraisals can have errors especially if the appraiser is not familiar with an area. For instance, they may be appraising a home in Audubon Park but take comps from across the street. The difference is major! Audubon has its own police force, is well developed and brings a much higher per sq ft value.
0 votes Thank Flag Link Wed Jul 30, 2014
Hi Suzy:

There is much that is subjective about determining the fair market value of any home. Even the same professional might come up with different numbers when looking at the same home at times several months apart because the homes used for comparison may be very different. But it is frustrating when this causes buyers and sellers trouble.

One thing I will note is that, while it can be hard to get an appraiser to change his/her opinion, you may be able to re-negotiate with the buyers or you might work with the buyers to find another lender. Often buyers think that being rejected by one lender (for any reason) means they will have the same experience elsewhere. Often (especially in current conditions) nothing could be farther from the truth.

I hope this helps.


Kind regards,
Ron Rovtar
Prudential Real Estate of the Rockies
303.981.1617
info@rovtar.com
http://www.rovtar.com
0 votes Thank Flag Link Fri Oct 12, 2012
Recently I've heard several horror stories like this one. It seems that many appraisers are providing shockingly low estimates of value; however, you could always challenge the appraisal. Good luck!
0 votes Thank Flag Link Fri Oct 12, 2012
What was the purpose of the appraisal? Selling a half interest in a property, that sounds odd. Arms length transaction? Would guess not unless it is an investment property.

Soooooo, selling half interest in a divorce is different than selling it to a stranger. But, if a lender ordered the appraisal during a loan application process there is a very good chance the appraisal is accurate. If you think it is wrong you must provide proof and the process must be in writing. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Fri Oct 12, 2012
Appraisals can be somewhat more subjective than we would like to think. It would be a good idea to review the appraisal itself to make sure the appraiser accounted for all of the amenities of the home: square footage, garage, basement, room count (including bath rooms), etc. From there look to see if the appraiser used any of the recent sales that the real estate agent used. Websites like eppraisal.com can also be helpful.

Good luck.
0 votes Thank Flag Link Fri Oct 12, 2012
From a negotiation standpoint if you were to sell the whole house to someone, they would take out a loan based on an appraisal done by a professional appraisor. The standards on an appraisal are much tighter. Too tight for some people, but it is what the banks look at.

Therefore, it would be hard for you to argue with the other half-owner that they should go with the realtor-assessed property.
0 votes Thank Flag Link Fri Oct 12, 2012
My first concern would be what price range this property is in. A $20,000 spread/difference in the 40213 zip code seems high. However, if the home is $200,000, then that is only 10%. Right now, our market can easily see a 10% spread between two price comparisons based on comp limits. If the appraiser may have had tighter restrictions than the Realtor then this could be the answer. Appraisers are often limited in time (ex. sales less than 6 months old) and distance (ex. one mile from subject or less) to name a couple of categories. Realtors will often look outside of these ranges.
You can request a copy of both reports and look at the comps used for each. If they are different, look at the differences/limits (time, distance, size, amenities) and see what each used as limits. If you feel the appraiser could have used different comparables and stayed within the limits required, you can appeal the appraisal. Good Luck!!
0 votes Thank Flag Link Thu Oct 11, 2012
It is difficult when dealing with family. You could get a third opinion but make sure it comes from a neutral party. Often your estate attorney can give you some names to choose from...it could be an agent or an appraiser. Another option is to find an agent that specializes in that specific area and get his/her opinion. On top of value ranges, an area agent can let you know about current supply/demand/etc a little better than someone looking only at the stats from recent months. 40217 is one of the few zip codes in Louisville that can be seasonal due to its closeness to U of L. If an agent would list for $135,000 the sales price would likely be lower and that is the price you need to look at. A list price can not be used to judge actual value.
Flag Fri Oct 12, 2012
Okay so the whole situation is as follows: My parents passed away this past year and my brother and I are left to deal with what to do with the family home. We brought in a realtor to look it over, give their opinion as to what we could list it for on the market as is if we decided to sell. My parents home is actually in the 40217 zip code and realtor said as is he would list for $135,000.00 as is, but if some updates were done he felt it could go up for $140,000.00 or more. My brother and I had verbally agreed to go off whatever the realtor came back and said cause he was interested in buying me out of my half but when it came back more then he thought it would he then wanted to get it appraised. So he did so 2 weeks ago and his appraisel came back for $115,000.00 which happens to be just under what he had told me was all the bank said they would approve him for. I am just kinda shocked that these two people would come up with such different persp
Flag Thu Oct 11, 2012
We are talking $20,000 difference:
What are the numbers?
If you're talking $700,000, then $20,000 isn't much.
If it is $100,000; then $20,000 is quite a substantial amount.

You cannot give us a small piece of information and expect an educated answer!

No matter which number you go by; you are only setting the starting point for a sale:
You are NOT determining the SELLING PRICE!
The Buyer will some say in the matter.
You are just trying to attract some interest. So don't sweat over this too much.

Good luck and may God bless
0 votes Thank Flag Link Thu Oct 11, 2012
Okay so the whole situation is as follows: My parents passed away this past year and my brother and I are left to deal with what to do with the family home. We brought in a realtor to look it over, give their opinion as to what we could list it for on the market as is if we decided to sell. My parents home is actually in the 40217 zip code and realtor said as is he would list for $135,000.00 as is, but if some updates were done he felt it could go up for $140,000.00 or more. My brother and I had verbally agreed to go off whatever the realtor came back and said cause he was interested in buying me out of my half but when it came back more then he thought it would he then wanted to get it appraised. So he did so 2 weeks ago and his appraisel came back for $115,000.00 which happens to be just under what he had told me was all the bank said they would approve him for. I am just kinda shocked that these two people would come up with such different perspectives on the same property especially since when the realtor came and looked at the house it didnt have new carpet laid nor the roof redone on the house or garage...where both of those were done when the appraiser came in.
Flag Thu Oct 11, 2012
The bank will only lend based on the appraisal.
Comps are from sold properties within the last six months.
0 votes Thank Flag Link Thu Oct 11, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer