Appraisals and Who Get’s to Determine the Value?

In Real Estate school we learned in housing market value is determined by a willing buyer and a willing seller. This is the  definition of market value. Fannie Mae describes it this way: “Market value is the most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.”

But wait how many times has an appraiser come out on assignment from the lender and lowered the agreed upon price by the buyer and seller. I say it happens all to often. It seems a bit unfair that they can have that much power. Especially in a sellers market where there is little inventory and in some cases multiple offers.

Sure the banks can argue that this protects them and their clients but in essence the banks are out of touch and just looking at the numbers!  They are a little afraid to use the higher values due to fear that they will be on the line if default occurs.  This is my opinion.

There needs to be an easier process to appealing appraisals. What usually happens is the seller loses because you are so far into the transaction by the time you get the final amount of the appraisal new places are purchased, rented moving trucks hired and then everyone has to turn around and re-think their plans because an independent appraiser was afraid to support the value that was agreed to.

Teresa Larson Village Real Estate, Murray UT
20+ years real estate experience

About Teresa Larson

Over 20 years real estate experience in the greater Salt Lake City, Utah area. Licensed as an Associate Real Estate Broker in Utah since 2006. Attended ERA Real Estate Top Gun Academy, Certified New Home Specialist. Numerous years of various real estate continuing education. Associates Degree in Business from Salt Lake Community College 2014, Certificate of Proficiency in Web and Graphic Design from Salt Lake Community College 2013. Served the community for 16 years. (1984-2000) as PTA President at Arcadia Elementary, PTA President at Bonneville Junior High, PTA board member for 8 years at Oquirrh Hills, Arcadia Elementary and Bonneville Junior High. Room mother for 12 years! Graduated from Clearfield High School. Currently working at Village Real Estate in Murray, Utah. servicing the greater Salt Lake City, Utah area. Focusing on Salt Lake and Davis counties.