From Appraisal Discrepancies Hold Up Some Sales:
Jon Treon, a broker for Re/Max Executive Realty in Natick, said two of his pending sales were recently challenged because the appraisals came in about $10,000 lower than the agreed upon price, a last-minute problem he hasn't seen in more than a decade.
In one case, an appraiser valued a Natick home at $11,000 less than the $341,000 price agreed upon by the seller and buyer because an identical property in the duplex sold for $330,000 the previous year.
Treon said he understood the appraiser's rationale, but the decision put at risk a sale that had a willing buyer and seller.
"Buyers are the ones that determine value, that is how real estate works," Treon said.
Someone needs to explain to this complete idiot that so long as lenders put up 80% or more of the purchase monies....that it's not exactly the *buyers* who are *determining value*. It's the freakin' banks!
One word on appraisers....
In the real estate bull market, banks wanted high appraised values and they got them.
And, in this bear market, the banks will want less risk and hence lower appraisals - and they'll get them one way or another.
Okay, here's another word on appraisers:
The whole real estate commission haggling reminds me of diamond ring appraisal at Macy's. Their jeweler will appraise your ring and his charge will be 1% of whatever he appraises it at!!!!!!
A dopey guy I know, took his fiancee's ring there, got it appraised at $15,000 and was ecstatic because he only paid $9,000 for it. For his ectasy, he was charged $150. I guess a good transaction is not when everybody wins, but rather when everybody thinks they've won.
I would almost bet my life that that ring is not worth more than $7,500. HAHA.
Wow. I wrote that over four years ago!