Realtors disagree with my private appraiser's valuation completed 9 weeks ago.

Asked by Captain Pat, Moving Tue Oct 9, 2007

Who should I believe and why? Appraiser-875 Realtor#1-849 Realtor#2-835 . In 9 weeks my property did not go down in value $40,000.

Help the community by answering this question:

+ web reference
Web reference:


Mr.P, , Arizona
Tue Oct 9, 2007
For starters Captain Pat,

Your appraisal is 9 weeks old. 9 weeks in this market is a life time.

9 weeks, was one week before the Credit markets came to a screeching halt.

Google Jim Cramer and watch his Meltdown.

I can name dozen homes that are 100K under appraiser`s value.

Pay no attention to the appraiser, I would go with Realtor #2.
The appraiser will not buy your home. The sooner you get the number 875K out of your head the better.

I would begin my marketing by saying 40,000 under appraised value.

Is there a time difference between Realtor & Appraiser?

Good Luck
1 vote
Not Applicab…, , Santa Claus, IN
Wed Oct 10, 2007
An Appraisel tells you what it would cost you based on today's prices - to replace your current home. A value finder (CMA) that a Realtor uses tells you what homes "like yours" are selling for on the market at that time. Appraisels and CMA's are different and should not be compared to one another.

The realtor on the low end may focus on being the most competitively priced property (like yours) in order to get it noticed quickly. That means pricing it BELOW current market value and possibly expecting multiple offers that could then result in a sale price that is above the original list price.

The middle realtor may factor in the strategy of staying at or just above current market value in order to create a "round-table" situation ... a buyer will come in lower than asking price and there is room to negotiate and hopefully a middle point will be reached.

Do your own Market Analysis ... go onto your local public multi-listing website and do a search for properties with similar characteristics as yours (if you do not have a basement, do not look at homes with basements because it would be like comparing apples to oranges). Really look at them and see for yourself where market prices currently are ... but keep in mind that the listing price isn't telling you SOLD histories (and what those homes finally sold for) - and it doesn't tell you how many days the current listed homes have been on the market. But do some groundwork - notate the mls numbers and call a local realtor to find out how long on they've been on the market and ask them for comps for solds - they should be able to send that to you directly by Email for you to review on your own. Good Luck to you.
0 votes
Carrie Crowe…, Agent, Southaven, MS
Wed Oct 10, 2007
Captain Pat,
I am sorry that this is confusing for your. In the last 2 months prices have continued to drop. Comps have to value at the present time. They only state what properties sold for at a specific time. A CMA is almost a useless tool in todays market. Numbers are changing that quickly!
0 votes
J R, , New York, NY
Tue Oct 9, 2007
Sorry, I do not comprehend. I expect the appraiser and Realtors to be very close in value. If an appraiser thinks my property is worth 875, why should I be willing to sell for 835? If the market value is 835, why would an appraiser tell me or a bank a number so much higher? Banks should be making loans based on real values. Looking for someone to make sense of the discrepancy.

Do you know what comps the appraiser used? And what comps the realtors used? As Pat said, 9 weeks is a long time. There could have been 3 or 4 closings in the mean time that pulled those comps down. What was the reason you had an appraisal? Was the appraiser local?
0 votes
Ute Ferdig, Agent, Newcastle, CA
Tue Oct 9, 2007
Hello Captain Pat. I do a lot of valuations for banks (have done over 700 in the past 2 years) and I know that the differences in valuation that you describe are not unusual at all. Have you spoken to the appraiser at all about his/her appraisal? In your price range, $26,000 - $40,000 variation is not uncommon especially if the opinions were not all prepared at the same time. I venture to say that not all three professionals used the same comparable sales and listings as a basis for their evaluation. If your property has been on the market for nine weeks for $875,000 and you have not sold it, you can conclude that the appraised value was too high.
I would take a close look at all the comparable sales and see how closely they match the features of your property. The real estate market is an ever changing picture. There are times when I am asked to prepare a valuation for the same properties at different times (with 4 to 5 months in between) and my opinion is not always the same as I will have to rely on more recent sales data that was not available when I prepared the first evaluation. Sometimes, I will also have an appraiser call me in regards to a listing that is under contract as the appraiser would like to know how soon it will close so that he/she can use it as a comparable sale. Unless I received a full price offer, I cannot disclose the accepted price prior to the close of escrow. This means, there are sales data in the making that are not available to the appraiser when the appraisal is prepared and an appraised value has very limited shelf life.

As the other's have already pointed out. An appraisal is an opinion that is prepared by a licensed appraiser based on uniformly accepted principals and we all know that we don't always agree on everything. If you had two appraisals prepared at the same time by two different appraisers, there's a good chance that they would not have arrived at the same value.
Web Reference:
0 votes
ian cockburn, Agent, New Orleans, LA
Tue Oct 9, 2007
As one professor once said, "nobody does nothing for no reason."
Your property did not go down...the apprasiers opinion of value was not in line with actual recent sales prices. Remember, the appraisal is an opinion.

The bottom line is, when you find a buyer, their bank is unlikely to loan more than what their(the bank's) appraiser says the house is worth.

Believe whom you may, but at some point the reality of the situation will point to actual sales.
Web Reference:
0 votes
Sylvia Barry,…, Agent, Marin, CA
Tue Oct 9, 2007
Hi Captain Pat:

There are so many ways to appraise a house and depends on the purpose, the house can have different appraised value.

Since you want to sell your house, you really want a competitive market value for your home as a listing price to sell your house. Perhaps it helps to see another thread about the 'Market Value' of a home…

Your prooperty value may or many not have gone down $40,000 in 9 weeks - depending on where you are and how active your neighborhood is.

However, with the goal of selling your house and not for refinancing, you want to price it at a compeitive point so it will attract buyers and will sell. Realtors are the ones who compare houses to the ones that are on the market or sell recentlys, and are also the ones who are actively tracking houses that are on the market and have not sold yet after so many days, they would adjust the market value according to the very fluid market condition.

Don't take the numbers at their face value, ask your realtors to explain how they derive their numbers, and then you will be able to make a more educated decision.


0 votes
Perry Hender…, Agent, Austin, TX
Tue Oct 9, 2007
It's just an opinion. They will all disagree and the real indicator is what people will pay now.
0 votes
Captain Pat, , Moving
Tue Oct 9, 2007
Sorry, I do not comprehend. I expect the appraiser and Realtors to be very close in value. If an appraiser thinks my property is worth 875, why should I be willing to sell for 835? If the market value is 835, why would an appraiser tell me or a bank a number so much higher? Banks should be making loans based on real values. Looking for someone to make sense of the discrepancy.
0 votes
Cj, , Esp., New Mexico
Tue Oct 9, 2007
One is based on the required Federal and State procedures needed to establish an appraisal and limited to the appraiser's opinion of value determined by his/her findings in accordance to the required federal and state procedures, this is what is used by lenders. The Realtor's opinions are based on their marketing knowledge and their opinions are based on what they see the market reactions are to the immediate purchase and sales prices in the market. You might want to consider something in between after discussing the reasoning used by the Realtors in tendering you their opinions.
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more