“Question: We’re planning to sell our house. It was appraised in August because we were planning to refinance. It came in at $855,000, but we’d be surprised to even get $800,000. How much stock do you place in appraisals?”
***ANSWER:
An appraiser comes to your home and takes notes, measurements, and photos. He or she then creates a professional document with columns of information, photos, and calculations. With a pro doing such detailed work, the value they determine must be dead-on accurate…right?
Wrong.
While many are accurate, far too many are WAY off–I’ve seen several miss the mark by over 30%.
THIRTY PERCENT!
Why such a margin of error? There are several reasons:
- Appraisers cover broad areas and may not know specific neighborhoods.
- They often use “comps” that aren’t very comparable.
- They often have inaccurate data on these comps.
- Not being “in the trenches” selling homes daily, many lack the feel for what a buyer will pay for a home right now, today.
- Appraisers must follow certain rules that, oddly enough, make their estimates less accurate.
- Lenders often tell appraisers to “target” a certain value.
Do appraisers do a bad job?
No! I know several who are skilled, hard-working professionals and are quite accurate. But not all appraisers are like that. And the trouble is, you don’t know who the accurate ones are.
Learn More About Real Estate Here
If you’re thinking of selling your home or other property, you need a good idea of what it’s worth. Call me and I’ll be happy to determine the value for you, free. I may be able to give you a rough idea over-the-phone. Just call me at (858)457-KENT. That’s (858)457-5368.
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