Why are appraisers not more consistent?
I find appraisals today one of the most frustrating parts of the real estate transaction. Appraisers are not consistent, they ignore the very detailed instructions laid out for the appraisal and then when challenged refuse to make any changes.
I had an appraisal at the end of last year where the instructions specifically said no sales over six months were to be used. The appraiser went back almost a year, used a distressed sale and then adjusted all sales to that distressed property. He ignored sales that settled within weeks of the transaction which supported the price.
I had another appraiser who also last year refused to accept comparable sales because they were not similar houses, although they were just doors away from the subject property. One was a large twin, my sale, the other a smaller single family house which had sold for a higher price. You cannot make an adjustment for that?
Now, I have a local development, consists of one and two bedroom condo apartments as well as some two bedroom townhomes also part of the condo association. The townhomes always sell for higher prices than the two bedroom apartments. When pricing here, I look at the two bedroom apartments, but usually more to know where those are selling, but use town home comps from this development and a nearby development that has town homes, because frankly, comparing an apartment to a town home is not a comparable sale. But, just had an appraisal where the appraiser used only sales within the original development and only adjusted for square footage, not for the fact that one is a townhome and the other an apartment.Refused to use comps from this nearby development that were similar size and supported the price.
Meeting another appraiser today and have prepared using just comps in the development. Probably will be told he needs a comp from outside the development to support the price.
Just one of the issues we deal with on a daily basis to get a home to settlement.
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