Property Appraisals: Can You Negotiate When It's Too High, or Low?

Описание: Property Appraisals: Can You Negotiate When It's Too High, or Low?

I have someone asking a question about appraisals...and they're discovering that a couple of the bedrooms aren't permitted. Now, typically in an appraisal, and it depends on the appraisers, as well, some are a little more thorough than others. And in fact, during the pandemic, some of them can do drive-bys. Like they could just look at the exterior and be doing an appraisal. Let's answer the question if appraisals are "set in stone?", and these [appraisers] are humans, and I've been doing real estate for 10 years, but I haven't seen every home, every neighborhood, or every building, I have had situations where they'll give them valuation. And it might not really match what we think the value is, you can contest an appraisal, but there is a certain situation where they not might not be aware of certain things, I'll give you two examples, I had one know, they just thought the price should be a lot lower, but not realizing that all the condos were facing each other. So when you come out, you're looking at your neighbors, and the condo that we were selling wasn't like that it was on the corner, and it was under a big shade tree. And it was very private. I mean, considering that it was in a complex, it was a really great layout, that appraiser was asking me about the value of another one based on mine. And I had to make him aware that the location and where ours was sitting was very different. And that's how come our sold so high. So there's a lot of different varying factors that the appraiser has to consider. And they do reach out to the realtors and we do work together to help each other out. Now if the appraisal comes in less than the value, which can actually happen. And let's say you're doing 100% financing, like a VA loan, well, if you want to honor the price that you offered, you have to make up the difference in cash. Do you have $30,000 lying around to make up the difference? Maybe not? Maybe you do. So to combat that, you know, my buyers willing to pay X amount of dollars above appraised. Now what happens if it comes in above value, let's say offered $650k for a home and it appraises for $675k. Appraisers telling you this home is worth $25,000 more than you're praying paying for it. Hooray. That's a great situation to be in. But when it does happen like that, do I pay more? And the answer is no. You locked in $650k and you paid for the appraiser for your lenders, peace of mind and your peace of mind. But that doesn't mean you're paying any more if you didn't offer more. You want to make sure it's something you can handle if the appraiser doesn't agree with what you think it's worth. That's my professional opinion. Finally, if you're a resident of Oahu, I want to let you know that you can follow me on Instagram and Facebook at theOahuist, or check out our website at theOahuist.com

Bridget Townsend, RB-23199
REALTOR, Corcoran Pacific Properties
SRES, PSA, MRP, ABR
808.265.3906
[email protected]
www.theoahuist.com