Subjective appraisals (recourse)
I have a question about the seemingly subjective nature of appraisals. As I previously mentioned, I got a good deal on my personal residence, renovated it, and plan to realize a profit when I sell. I recently spoke to my realtor, who stated there are several appraisers in my small town and they continually have different ideas of evaluating properties. My agent stated a couple come in low and one comes in high (compared to what she thinks they should).
So my question: With the help of my realtor and my own research, I believe I can sell my house for $150k (after looking at many comps). If I’m so lucky to get the “low-ball†appraiser, who values my house at $135k, how will that affect the sale? For example, doesn’t the appraisers’ valuing set the stage for what the lenders will lend? If someone falls in love with the house, is willing to pay $150k, but the appraiser says it’s only worth $135k, is the deal shot?
Thanks for you input,
Jim
(after writing the above, I found the very informative post by J Scott. The one thing I’m still unsure on is what kind of recourse do I have is I get an unfair appraisal? Furthermore, if the first offer doesn’t workout, could there be multiple appraisals via different lenders?)