O.K. Here's the deal. I realize the market is down and it's a buyers market. Property values have dropped. I get that. But what I don't get is how can an appraiser appraises a property that appraised for more then $232,000.00 in late 2008 and appraise that same property for under $200,000.00 today. Especially in a market where property values have not dropped much at all. In fact a market where we are seeing an increase in value overall. A slight increas mind you but an increase none the less.
Funny thing is the new appraisal came in at exactly the selling price of this property. In our market the appraiser gets to see the actual purchase agreement before the appraiser does the appraisal. By the way the sellers agreed to the sale price because they want to move the property fast. We did. It was sold in less then 3 days.
In addition I don't believe this home could be duplicated today for less then the prior appraisal. Therefore the cost approach would show a different value. The home is barely 5 years old too.
My concern is that because the appraiser sees the selling price a true appraisal is not actually done. It looks like the appraiser sees the number they need to hit and miraculously it happens to just hit the sale price. This happens a lot.
So you appraiser out there would you please enlighten me? How does this happen time and again?
How about you Realtors out there, are you experiencing the same thing?
