Frustration with Appraisals!

By
Real Estate Agent with Keller Williams Community Partners

I know every agent in this country is feeling the same pain that I feel when it comes to appraisals!

At my weekly Rotary Club meeting I had a friend share his frustration. He recently had his home appraised for refinancing.

His frustration was in the fact that, in his opinion, the appraiser had no idea about the details of the home. When my friend had his home built he spared no expense. Extra insulation, upgraded hardwoods, top of the line fixtures, counter-tops, and extra energy efficiencies throughout.

In a normal market all of these upgrades would weigh on the price of the home. In this market all bets are off!

I told my friend that my home was appraised for $50,000 less than I paid for it in 2001! I have put in a new Kitchen, new Master Bathroom, and screened in the porch! My reward? $50,000 in lower value!

What I saw on my appraisal is that a home is rated excellent, good, fair, or poor. A higher rating is the most you can expect and I do not know how much that adds or subtracts to the value of the home.

Bottom line: I told my friend that I agree with him. Until the appraisers take more factors into account when appraising a home, our values will stay the same!

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appraisals
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north georgia real estate
lake lanier real estate
north atlanta metro area real estate
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Rainer
63,700
Brett Reichel
Pacific Residential Mtg., LLC - NMLS 1477 / WA CL-1477 - Clackamas, OR
MLO 210215

It's a tough market - Appraisers are stuck with valuing only what buyers value.  Buyers don't always value the same things that a seller values.  That's why some special extras in a home, don't always help out.  You also have to worry about over improving a home, making it too nice for the neighborhood.  I'm sorry for your and your friends troubles.  Appraisals are a major issue in this market!  I hope it get's better for you soon!

Nov 19, 2011 05:51 PM #1
Rainmaker
576,718
Corinne Guest
Barrington Realty Company - Barrington, IL
Barrington Realty Company

Yes very frustrating. I have a current deal going and the appraiser was actually a local resident. Yet the comps pulled were laughable! Seriously there were much better ones to use. OK so the amount is the same as the purchase but it just looks like they could not come up with anything "real" 

Nov 19, 2011 05:52 PM #2
Rainmaker
536,403
Jill Sackler
Charles Rutenberg Realty Inc. "Said and Done!" - Merrick, NY
Long Island's South Shore Real Estate Agent

I heard a popular motivational speaker ask recently if "all appraisers go heaven?" Not likely in this economy but it made me laugh.

Nov 19, 2011 05:53 PM #3
Rainmaker
553,316
Kathy Toth
Ann Arbor Market Center Keller Williams - Ann Arbor, MI
Ann Arbor Real Estate Experts - Kathy Toth Team

Appraisals are a concern.  Often homeowners go it alone and don't actually point out all the great aspects of their home.  With interest rates so low, how sad for those that actually just want to stay in their homes and just get a better rate.   

Nov 19, 2011 06:08 PM #4
Rainmaker
712,813
Lanre-"THE REAL ESTATE FARMER" Folayan
Keller Williams Capital Properties-Buy a home in Washington DC. Sell a home in Washington DC - Washington, DC
How much is my Washington DC House Worth?

An appraiser just did one about two weeks ago on a condo that my client was trying to purchase. I agreed with two of the comps but the last one was off like $8,000 off from the other two and it was in a total different city. What? I couldnt believe it. I had to dispute that one. It is very frustrating.

Nov 19, 2011 06:53 PM #5
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Rainmaker
56,904

Randy Wells

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