What Is The Real Estate Villon?
Appraisals Continue To Be The Villon in the Real Estate Family' During Real Estate Transactions.
Appraisals are increasingly being blamed for preventing deals from making it to the closing table. Therefore making appraisals the Villon in the real estate family In a common scenario playing out across the country, sellers are accepting buyer offers to later have an appraisal come in at a dramatically lower amount, which threatens to derail the entire deal. Unless the seller comes down in price or the buyer puts down more money, the deal often fizzles.
"The appraisers have so much power to kill deals," I Personally experienced this cold hearted fact about appraisals. I have to say I can’t help but to swirm every time we get close to the closing table, finding myself worrying if the house is going to close or not.
In WNY Appraisers determine a property value by evaluating over the past six months sold transactions, current listings, and pending sales. But some critics argue that appraisers are giving too much weight to foreclosed properties in their comparable. While appraisers once rarely factored in short sales and foreclosures, appraisers would be negligent not to do so now. I understand that Appraiser are only doing their job and their not trying to play god in saying what your property is worth there simply offering an opinion based on current data out there.
We as Real Estate pros are educating sellers more about the appraisal process realizing that sellers will need to consider the appraisal process more than they ever have and how it can threaten the sale.
For example, My client put an offer in on a house and the price was 109,900 but the appraisal came in at 101,000 this was a 9000 difference the seller and the buyer was not willing to save the deal so therefore the deal fell apart. As a Real Estate Professional its only natural for me to try to save the deal for my buyer but when no one is willing to work together there will be no deal. In a related incident one of my other clients suffered the same fate when my buyer offered $117,000 for a WNY Home., which was then appraised at $112,000. That deal was able to survive, thanks to a buyer who had deep pockets and was willing to put up more money, but this was no normal buyer, it would have never gone through.
Now I will like to ask you should we expel the Villon syndrome from The Appraisers’ or is the Appraisers’ the Villon’s we call them. Please leave comment below
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