🏡📝 Let's talk about real estate appraisals and why they can be so tricky.... 🧐✨

Take for instance this appraisal story.

➡️ My buyer went under contract on a property and therefore an appraisal was required by her bank. The appraised value came to $188,000.

Unfortunately, the deal did not go to the closing table due to a crazy neighbor (that's a whole other story). Therefore the buyer and seller parted ways. The seller relisted the property and went under contract with another buyer. Of course the new buyer's lender required an appraisal. The new appraiser's value? $151,000‼

This extreme discrepancy between two appraisals is pretty rare, and chances are one of them has inaccurate or missing information, but it just goes to show...A real estate appraisal is essentially the opinion of one appraiser! It's their professional assessment of a property's value based on various factors like location, condition, size, and recent comparable sales. 📈💼

Even on the same home, with two separate appraisers, you can end up with two different appraisal numbers! 😱🔄 It's not uncommon for there to be variations in the final figures, and it can sometimes leave both buyers and sellers scratching their heads. Again, generally there isn't this dramatic of a difference.

Why does this happen? Well, real estate appraisals involve a certain degree of subjectivity. Each appraiser brings their own unique perspective, experience, and methodology to the process. 🤔💡 Think of it this way: if you asked two art experts to evaluate a painting, they might have differing views on its worth based on their own expertise & personal preferences.

So, what can we do if you find yourself facing conflicting appraisal numbers?

➡️ Ensure that the appraiser has access to all relevant details about the property, such as recent renovations, upgrades, or neighborhood developments. This can help minimize variations in their assessments.

⭐️ And don't worry, a good lender and Realtor work together to get to the bottom of the discrepancy, so it's not on YOU as the buyer or seller.

#realestateappraisals #themoreyouknow #indianapolisrealestate #indianapolisrealtor #indyrealestate #watersandwellbaumrealestate

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