Appraisal Frustrations with the ' Big Banks '....

Appraisal Frustrations with the ' Big Banks ' ...

Just a short blog on a stressful factor we cannot control as realtors. When we find homes for our clients in this market, that are well underpriced, we want them to see the value as well when their appraisal is done. Being that the lender that they are using will require a 300-350 investment on their end to get the appraisal done, you would hope that it was a 'true market value' appraisal. Not the case with the big banks.

When the 'big banks' do my appraisals, they come in right at sales price, even when I know the home is 50, 100 or 200K under priced! It is very frustrating and has my buyer's questioning the value, even if I have shown them similar past sales of same floorplans in the building or homes on the street/neighborhood. I have since learned to prep them when using the big banks that their appraisal will come in dead on, so this has been eliminated.

Twice, I have had appraisals come in at our original offer price, where the appraiser did not read the signed counter for the higher price. The first one, was a home that we got the day that it came on, that was well underpriced, for 375,000. I knew that in this market it could go for 400,000 and that, in an up market, it would go for 450,000 or slightly above. Our original offer of 350,000 was what was sent to the appraiser, without the signed 2 page counter on top. Once I let them know their mistake, they, WITHIN MINUTES, switched our appraisal back to the 375,000. Thanks for the stress and what a waste of my client's $300.

The smaller brokerage types, like my favorite these days, WR Starkey, always comes in at true value, which is great. My clients are ecstatic to see the value that they have, even in this market. I have had two this past month. One was a townhome that we got at 165,000 in Midtown that appraised at 215,000 and another a single family home in Sandy Springs/Chastain area we got at 400,000 and appraised at 470,000. The $300 is not wasted, and my clients are happy in their home as well as their newly found equity.

One big thing that these true appraisals mean as I help people purchase short sales, is that we have 'room' to move up in price. When the new construction short sale home that I helped a couple buy at 424,900 appraised for much higher, they were able to come up in price to make up for the 9,800 lien on the property. If it had been a 'big bank, right on' appraisal, they could not have bought the home.