ALTHOUGH I REALIZE IT VARIES ACROSS THE COUNTRY, ARE WE HAVING AS MANY SERIOUS ISSUES WITH APPRAISALS COMING IN BELOW THE SELLING PRICE?

Asked by Wes Black, Louisville, KY Mon Jan 24, 2011

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Bill Kruckenberger’s answer
Bill Krucken…, Agent, Sapphire, NC
Thu Nov 10, 2011
We certainly experienced that problem here in the Western Blue Ridge Mountains of North Carolina for a brief time too.
However, it seems to have worked through a bit in our area already.

I had six transactions close in October and only one appraisal came in below the Contract Price, but we felt it was fair, as the deal included furniture and they paid a high very-close-to-asking price for the home.

Thanks, good luck and happy selling!
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allan erps,A…, Agent, Pearl River, NY
Tue Jan 25, 2011
Hello Wes, I have had a few instances lately. Had a Short Sale listing that was basically ready to go for $150,000. The Bank after 2+ months came back at $198,500 for my one bedroom/1 Bath ground floor Condo. Can buy a 2 Bedroom/2 Bath middle or upper unit for the same or less than the appraised price. Buyer of properties appraisal was for $160,000. Have sent (6) viable Comps in and am waiting for the "clueless" Bank to respond! Allan
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Fred White, , Louisville, KY
Tue Jan 25, 2011
I've not had the problem with the appraisal, but I have had problems with the underwriter itself not accepting the appraisal due to lack of quality comparables in the last 6 months. This happened with a higher-end rural property.
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Jessica Hood…, Agent, Gambrills, MD
Tue Jan 25, 2011
Wes we are having them here as well. And if it were truly a case of us having overpriced a single house I'd take it like a woman. But we are getting crazy low values when we least expect it. I had one house that had a reasonable market value of close to $700,000. Luxury homes are moving mor slowly here but in the 5 months it was on the market we had three offers all upwards of $650,000 and the final accepted price was $670,000. The house appraised at $620,000! So the experienced agent team and all three buyers (according to the appraiser) all had it wrong by over $50,000. His comparisons on pricing were all on homes that we between 15 and 20 years older than our custom build with no value adjustment for the age difference. He also gave one home that had a 5 year old kitchen a $20,000 upward adjustment versus our 10 year old kitchen. There is rampant insanity as the banks retract I'm sure in an attempt to protect themselves from future losses.
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Gregory Lile, Both Buyer And Seller, Louisville, KY
Tue Jan 25, 2011
Personally I have not had an issue with appraisals. If a Realtor educates their seller and prices the property at a fair market value and a Buyer’s agent does their due diligence and makes a fair market offer then an appraisal should not be an issue. The key to not having an issue with an appraisal is having a Realtor that knows the local market conditions.
Web Reference:  http://greglile.semonin.com
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Gregory & Mo…, , New Albany, IN
Mon Jan 24, 2011
Depends on the price range and how many sold comps are available. I reciently had an appraisal that was $1000 short. If it had been $10,000 I wouldn't of thought anything about it, but $1000 give me a break.
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