Home Selling in El Paso>Question Details

Veronica V, Home Owner in El Paso, TX

When seller has an appraissal to sell his home and the buyer gets another appraissal, what is a reasonable amount between the appraissals?

Asked by Veronica V, El Paso, TX Fri Aug 24, 2012

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The appraisal ordered by the lender, will be the only one with real value, that is why I always recommend the seller`s that I represent not to do that, It is a real waste of money.
0 votes Thank Flag Link Thu Aug 30, 2012
It's all "reasonable," because an appraisal is basically using reason to deduce value from comparable properties.

For the purposes of keeping a deal together, it is the buyer's appraisal that rules. The lender will only fund based on their appraisal, and they will so totally ignore the seller's.

All the best,
0 votes Thank Flag Link Fri Aug 24, 2012
Jeanette's answer is excellent. As a lender, I must say that the lender will only use the appraisal prepared ordered through an appraisal mangement company for that specific buyer.

Barbara Coker
Licensed Mortgage Loan Officer
0 votes Thank Flag Link Fri Aug 24, 2012
Appraisals can compare the "subject property" against several "comparables" in the neighborhood. Depending on how long the time span between the seller's and buyer's appraisals were done can affect the "value". There are various ways to calculate the value of the property-the most popular being 'cost approach'. So if the seller has an appraisal done and there are 3 comps in the last six months, the resulting value is "____". Then if a buyer comes along to purchase a 6 month old listing and there are now 9 comparables in the last 6 months the value can and will change. It depends on the neighborhood. Some neighborhoods hold value pretty well, they have less 'distressed sales' like foreclosures so the variance will be minimal. Or you can be in a neighborhood that has more distressed sales or new construction close by and the variance in the appraisal prices are greater. Like the expression goes: "Real Estate is local" and can vary neighborhood to neighborhood. Please let me know if I can help you further.
0 votes Thank Flag Link Fri Aug 24, 2012
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