Please note the title of this post says appraisALS not appraisERS....and regardless of the noun, there is likely to be some disagreement....please do so poltely and professionally...this is a forum where varying professional are welcomed...bashing and trashing is not.
Recovering markets are experiencing over asking offers. Thank you Fairy Blog Parent...for featuring our recent blog When Buyers Pay OVER the Asking Price... the subject causes a lot of concern in many areas. Having done short sales....shared fears and tears with homeowners who bought high and had to sell low...my heart has been heavy, sleep lost and sympathy abounding for people who have been forced into doing short sales due to circumstances beyond their control.`
In Real Estate 101, agents are taught (at least this one was) that the appraisal is the "safety net" for any Buyer...a Buyer "CANNOT" pay more than a house is "worth" ...it will not appraise and the lender will not extend a mortgage beyond the market value if the home.
Hmmm....With bidding wars abounding in some places...we...the collective "we" of the real estate industry....say that the "market decides." The market has decided that for reasons of Thinventory....and I would add, in some cases, Sellers really getting their ready for sale with upgrades, updates and the latest and greatest in all things technical, that there is more value than in the past.
Newer rules and regulations have gone to great lengths to increase the distance between lenders and appraisers, realtors and appraisers in an effort to sharpen the focus of objectivity and produce an evaluation that is a reflection of the market...not the desire to lend or sell. No lender gets to choose their favorite appraiser...the third party system makes that selection and appraisal done "without the influence" of any other relationship.
We have not had an issue with any property appraising...for asking or over asking prices. The appraisals sometimes have exceeded the over asking prices with smiles abundant on the Buyers' side of the closing table. "Instant Equity" ....what a wonderful gift !
Appraisals are opinions...schooled...yes...can there be more than one...can they vary a lot ...we see it all the time in divorce court. The court appointed appraiser has a "fair market value" for which the marital property should list. We have yet to see that number approach the reality of the market.
Do I have a better mousetrap ? A magic solution ? A way to bring realistic uniformity to the appraisals of the market ? I do not. The purpose of this post is to encourage professional discussion...invite thought...and know, from this Agent's perspective...there is always more than one way to evaluate a property.
If you or anyone you know is looking for a thoughtful perspective on real estate ...Call the Hansons...we are honored to be of service to Sellers and Buyers throughout southeastern Wisconsin.