03/15/2025
Here's a good recap on a low appraisal value. Over the past few years, limited sales have more often produced lower appraisal valuations (with less closed inventory, it becomes more difficult to "comp out" homes, especially those that are atypical, or what I call market "anomalies"). Along those lines, you can have multiple appraisers give varying valuations for the same property, but typically the variations are not that far out of line. Of course, there is always that "inexperienced" or otherwise incompetent appraiser (I have made a list over the years) who may not really know the area, or isn't as adept as the others. As a seller (with ME as your listing agent) I have to support our list price with my own comparable analysis. I can count on one hand the number of "low appraisals" on my own listings in the past 22 years, and of those, nothing that we couldn't get through and get the deal to close.
When someone is buying a home and they’re going to use financing in the form of a mortgage, they need an appraisal to cement the deal. Before a bank is going to extend credit, they want to make sure they’re not giving someone a loan that’s more than the fair market value of the house. That’s...
