I had and still have many questions
about appraisals & appraisers work and I thought share them
with you and get your opinions. They are:
Are you happy with the appraisal you get? Do appraisals
really reflect the fair market value of the property? Do
you think appraisers do a great job and spend enough
time to derive the fair market value? Do you
think appraisers do their jobs independently and they
are not being
influenced by lenders? Do you think appraisers should
have a copy of sales contract?
I address each question and give my
personal thoughts based on my experiences on each
I know when I do the comp it takes
me at least 6-8 hours to do my job. I do necessary
adjustments using several comparable properties that
meet certain requirements. I don’t agree with and don’t
use the CMA generated from MLS and do not use avg.
price/SQ. Ft. from MLS. Anyhow, it takes me at least a
day to come up with a good comp.
Also, I have been very good
negotiator and were able to get the sale price in some
cases about 20% less than the listing price in a Buyer
market (last year).
Last Year (Buyer Market):
Last year out of 4 contracts that I had, 3 of them
appraised exactly the same amount of the sales contracts
and one came up only $1000 more than the sale price. I
had seen the same trends, appraisals equal to sales
price, with other REALTORS. That cannot be a
coincidence, it only suggests me that appraisers just
looked at the sale price and use them without any
further serious investigations. Otherwise, it implies
that, all real estate agents are the same or better than
professional appraisers, which is not true at all.
If and when appraisers just take
the negotiated sale price and copy or derive their
values from there, they diminish the value of real
estate agents works and expertise’s (it is not good).
My Answers to Questions Set#1:
Based on the above situations and experiences from the
last year, Buyer Market, my answers to all of the
questions set#1 are No.
What are Your Answers to
I know each of you have different experiences and views
on these questions, and most probably, they are
different than mine, but I like to see your points
of view and reasoning’s for each of the following question.
When I get enough inputs, I will publish the survey
Are you happy with the appraisal
Do appraisals really reflect the fair market value of
Do you think appraisers do a great job and spend
enough time to derive the fair market value?
Do you think appraisers do their jobs independently and they are not
being influenced by lenders?
Do you think appraisers should have a copy of sales
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