Real Estate Appraisal Issues
It’s one of the most common complaints in real estate, the appraisal is too low or too high. If you’re dealing with a short sale the bank will often appraise the home too high, then you really do have major real estate appraisal issues. However, when you’re buying you don’t really want the appraisal to come in low, because that means you’re looking for a new home or paying the difference if you are financing it. Then again a buyer is hoping that the appraisal protects them.
How can an an opinion of value be unbiased when the person coming up with the opinion sees the contract?
If the appraisal is supposed to be what fair market value is and what a buyer is willing to pay for a home, then wouldn’t seeing the contract solidfy what that value would be?
I can’t offer you solutions to the real estate appraisal issues you are facing (I am facing as well) but I can explain part of the problem.
Over the past few years appraisers have had it pretty easy, since the market was declining they could break out their crystal ball and predict that this particular home would go down in value XX%. The catch is that they can’t do the opposite and predict that the home will increase in value. My guess being that this protects the consumer from the horror of the years past (pre-2007).
In any case, real estate appraisal issues are likely here to stay for a while and with the market heating up, would be buyers may need to be willing to pay the difference to make it work.
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