Over here in Kitsap, it seems as though our weak "Assessor Valuations" are causing buyers to offer lower, in the first place. Appraisals are fine, but buyers are doing vast amounts of research on-line and using the lowest excuses they can find. Our assessor just slashed another $30,000 off of Central Kitsap home values in one fell swoop! No examination of the homes, at all.
I hear this complaint a lot on the internet...but I've never seen a real life example in 20 years that didn't make sense. Saw one first hand that another agent brought to me. It sold too high. It wasn't the appraiser's fault. The buyer had to pay the difference in appraised value and sale price in cash. The seller came down a little and the buyer went up a little with cash. It worked out. The appraisal was not changed to accommodate the sale.
It's not an appraiser's job to appraise it for whatever a buyer is willing to pay for it. We see first hand the devastation that kind of activity can cause. For a house to sell for over appraised value takes cash...to make up the difference. The appraised value controls what can be financed, not what a buyer is willing to pay. If the buyer is 20% down and it doesn't appraise...maybe that same money becomes 15% down. That's how it is supposed to work.
Appreciation is not funded by banks with the sky's the limit. Appreciation is funded with a buyers cash making up the difference. That has been historically true until recent history, and appraisers appraising at whatever a buyer is willing to pay, is not good for the economy long term. We should know that now, if we didn't already know it before.
Encourage the lender's you work with to use Allegiant AMC (253.838.3542) or First Choice Appraisal Managent. These are owned and operated by appraisers and know how to treat the appraiser with respect and how to handle the difficult situations that arise in this market...tell them I sent you.
HLR, appraiser that has worked the Puget Sound area too for 15 years, just moved back to Oregon some years ago.
Best to you all