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Top 9 Reasons Appraisals Come In Low" Realtor.com

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Peter LeQuire

Elite Member
Joined
Jan 3, 2005
Professional Status
Retired Appraiser
State
Tennessee
#10 You, the optimistic Realtor, failed to do an adequate analysis of the market when you priced your listing.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
[author quals] Maureen Dempsey is a writer who covers fashion, beauty, lifestyle, and home decor. She's recently learned that decorating her new home is just as satisfying as filling her closet.
 

TRESinc

Elite Member
Joined
Dec 1, 2011
Professional Status
Licensed Appraiser
State
Ohio
[author quals] Maureen Dempsey is a writer who covers fashion, beauty, lifestyle, and home decor. She's recently learned that decorating her new home is just as satisfying as filling her closet.

i almost spit my coffee out when i read that at the bottom of the article. who better qualified to give a lecture about appraisals and their methodology than someone who who covers nothing related to appraisals...
 

Peter LeQuire

Elite Member
Joined
Jan 3, 2005
Professional Status
Retired Appraiser
State
Tennessee
OH, but it's just an opinion - like, I don't know art but I know what goes with the wallpaper.
 
Joined
Jun 2, 2007
Professional Status
Certified General Appraiser
State
Florida
I don't really see a problem with the article which is written to a buyer that just learned that an appraisal came in under what they paid ("low"er than the contract price). They all look like legit reasons to me, and the conversational writing style is very understandable to the target reader. We might do well to take this as a template for our own marketing material and re-write it from an appraiser's perspective, but you'd want to include every one of the concepts here at the very least.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I reluctantly read the article...it actually is pretty good (for a change) as it explains reasons the appraisal came in "low" (inferior features of the property)

However the article never touches on crucial issues...such as that buyer may have overpaid, and /or their RE agent showed them superior sales as "comps" to convince the buyer of the price .

This is really the fault of unprofessional RE agents, who over price listings, use ridiculous superior sales as "Comps", both to convince a seller their home is worth more and a buyer to pay more,.In addition, the RE agent is not preparing the seller for possible outcome of an appraisal , nor qualifying the buyer, does the buyer have, and are they willing to put $ extra to put down if it appraises under S C price/ Instead, RE agents like to throw tantrums and blame the appraiser for coming in low", why couldn't the appraiser to S T R E T C H the value to make their shaky deal work.,,(some appraisers do of course)
 

Artemis Fowl

Senior Member
Joined
Mar 16, 2004
Professional Status
Certified Residential Appraiser
State
Michigan
Did a consult for one of my wife's listing appointments. Multiple knowledgable people helped develop the target price. Purchased for 240k 2years ago...this small development has adequate sales for analyses, a colorful financial history and known quality issues...not like this is a secret. She lost out the to the agents promising to sell for 400k+. No way this should legitimately appraise in that range. Upselling definitely happens. Not a market analysis issue but a dishonesty issue motivated by desire to get the listing contract.
 
Joined
Jun 2, 2007
Professional Status
Certified General Appraiser
State
Florida
However the article never touches on crucial issues...such as that buyer may have overpaid, and /or their RE agent showed them superior sales as "comps" to convince the buyer of the price.
I see your point, but remember a buyer will offer to pay what it's worth to them - that's where "the market" happens. The article does address paying more than market. I don't need to see brokers bashed outright for being good salespeople, and theoretically if several "good salespeople" sell properties "above market" doesn't that make the new market? I do get your very legitimate point, although I wouldn't expect to see obvious broker-bashing in a realtor.com piece... it would never make it through the editorial review process.
 

miktay

Senior Member
Joined
Jul 3, 2007
Professional Status
Certified Residential Appraiser
State
Texas
I see your point, but remember a buyer will offer to pay what it's worth to them - that's where "the market" happens..

I don't disagree with what you wrote, but that's where a TINY PIECE of "the market" happens. Not the entire market. So, we appraise at market, lender loans what percentage they want, and if the buyer needs to put a little more skin in the game according to the market value lending requirements, so be it.
Our job is in not to hit a target, as Mike from NY says.
 
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