What a homeowner should know about appraisals
June 22nd, 2007 categories: Selling San Diego Real Estate
The author of this definition of appraiser is unknown to me. One thing is certain, as clever as I am, I could never have written this insightful definition.
“An appraiser is one who compiles and analyzes voluminous data of problematical accuracy from sources of dubious veracity and derives therefrom a numerical quantification of unquestionable necessity, analogous to a nebulous and euphemistic concept representational of value commensurate with ambient configurations of the open market and promulgates thereby a precise written declamation which delineates his observation, deliberations and conclusions all done while he feigns absolute ignorance of the avaricious machinations of Buyers, Sellers, Brokers and Lenders, compensated only by that penurious stipend known as the professional fee.”
If you read this far by now you may be wondering how you as a current seller in todays market would fair in the appraisal of your own home under just such a definition. In todays market with the tightening of the qualifiers that Buyers have to go through just to qualify for a loan, if that Buyer selects your home to buy, you can expect that you will get a first hand glimpse of what the Lender tells the Buyer that one of the conditions for final loan approval is that the home must qualify.
The new tighter restrictions are of course the industry response to the ever increasing number of defaults and foreclosures of the past few years of accelerating home prices. Back then appraisers looked at the comps, looked at the market with multiple offers and had to adjust upwards the appraised value. Not any more. If anything just the opposite. Considering just the recent solds and the slowing market, you might be a little surprised to find that your home doesn’t pass muster for the agreed to sales price ,even though it is very similar to one that just recently closed.
The most important thing to remember is that even if you get a good Buyer who agrees with your price, it isn’t over till the appraiser says its over. Hopefully, your appraisal will come in at the asking price.
