- Jan 15, 2002
- Professional Status
- Certified Residential Appraiser
I have noticed a growing trend in our market that seems to have spread like wildfire. For instance, yesterday I had a simple tract home re-fie assignment in a 1980-1988 addition where homes range from 1,200 to 1,800 SF. The borrower had been told by a local realtor that she could get $89,000 for their home as she had just sold the one down the street for $89,000. When I pulled up the listing for that home I noticed it had sold for $89,000, but had been listed for $82,000 with (surprise) zero seller points reported. Now, every other sale in the neighborhood supported $80-84,000. The agent did disclose in a phone conversation that the "seller paid some extra closing costs". So, automatically the home is worth $89,000 because you got a lender to accept those closing costs lumped on top? This situation made me wonder how many appraisers blindly accept accept higher sales prices over the actual list price without investigating. I quite possibly think many don't care. I looked at over 20 sales in the area and 10 of them had similar situations with $2-7,000 prices over the list price. This is not a result of bidding wars, there is ample supply for demand. What are your thoughts and views on this spiraling trend? Does the inflated pricing bother you? How are they getting the appraised value to support it?