Do auditors use this same type of zip code information, medium pricing and price per sq foot, when valuing a home?
And does do these market stats comprise the majority of an appraisers value or more or less? I ask because in it won't matter what deal the buyer and seller come too if the appraisal is lower and many sellers are not wiling to adjust to the decline sales per square foot.
Hello Hughcity,
The problem is that appraisers are now rolling both short sales and foreclosures into the appraisals along with properties that sold for fair market value that did not have financial problems, resulting in, of course, much lower values, which does means exactly what you are saying...that if the sellers do not adjust and the buyers do not adjust, the deal can fall by the wayside. It's really not good for anyone, but unfortunately, it is what it is in the marketplace. Unfortunate.
Please let me know if I can assist with any of your real estate needs.
Kind regards,
Linda
You are absolutely correct. I've recently had two deals in which buyer and seller agreed on a price but the bank appraisal came back a bit lower. The banks would not give buyer the loan, and the buyer could walk away from the deal. In these circumstances, either the buyer comes up with additional cash, or the seller reduces the price or they meet somewhere in the middle. Both my deals closed, but there are plenty of cases in which they don't.
Sellers at times are unrealistic, and even when their brokers do a great job in finding a buyer at a high price, the bank appraisal will have a huge influence on the fate of the deal.
Leo Cardoso
Moder Edge Realty
Low 3.75% Seller Commission
http://www.modernedgerealty.com
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