Discrepancy

[dani3as]

I purchased a property in Missouri June 2023. I am questioning the appraisal as it was a $100K discrepancy from previous appraisal. My question is, are appraisers allowed to include comps that are still active and not sold yet on the appraisal? Thx!

 

[glenn walker]

Yes

 

[ucbruin]

I purchased a property in Missouri June 2023. I am questioning the appraisal as it was a $100K discrepancy from previous appraisal. My question is, are appraisers allowed to include comps that are still active and not sold yet on the appraisal? Thx!

Curious how you were able to obtain a copy of the previous appraisal....
Did you get a copy of a refi appraisal from the seller...

 

[Dublin ohio]

I purchased a property in Missouri June 2023. I am questioning the appraisal as it was a $100K discrepancy from previous appraisal. My question is, are appraisers allowed to include comps that are still active and not sold yet on the appraisal? Thx!

Not clear on what you are describing. Was there an appraisal done since your purchase. Or are you comparing your purchase appraisal to an appraisal prior to purchase.

 

[Elliott]

For at least the last decade it has been a standard requirement of many appraisal management companies to include at least two listings with an appraisal, but generally only sold comparables are give the most weight. But tell us more about these two appraisals and the date they were made. What do you think explains the difference of $100,000?

 

[sputnam]

There are multiple factors that could cause what you are calling a discrepancy. Appraisals are opinions. Different appraisers have different opinons. Market values change over time. Sometimes they change very quickly. Although appraisals are opinions, they have to be supported. A big part of that support comes from the proximate and recent sales that are found during the appraiser's market research. The appraiser does not make those sales... he or she finds them and compares them to the subject property. What is available to be found can change over time. Both the more recent and previous appraisal reflect the appraisers' opinions of the value of the property as of the effective date of the appraisal.

 

[Flakey]

Question answered. You're welcome.

 

[dani3as]

Curious how you were able to obtain a copy of the previous appraisal....
Did you get a copy of a refi appraisal from the seller...

The first appraisal my lender had done before purchase in May 2023 $345k. I purchased the property and rehabbed it. Now I am trying to refinance and the current appraisal was done Nov 2023 $250k.

 

[dani3as]

Not clear on what you are describing. Was there an appraisal done since your purchase. Or are you comparing your purchase appraisal to an appraisal prior to purchase.

The first appraisal my lender had done before purchase in May 2023 $345k. I purchased the property and rehabbed it. Now I am trying to refinance and the current appraisal was done Nov 2023 $250k.

 

[dani3as]

For at least the last decade it has been a standard requirement of many appraisal management companies to include at least two listings with an appraisal, but generally only sold comparables are give the most weight. But tell us more about these two appraisals and the date they were made. What do you think explains the difference of $100,000?

What I am seeing is the location of the comps vary. The most recent appraisal, the comps are not updated and finishes are not as nice; plus it does not include any properties that are NW but that are in the same neighborhood. The previous appraisal did include that area.