A few weeks ago I wrote about how I was encouraged by an appraisal I was concerned might come in under sale price, but didn't… took it as a good sign that perhaps appraisals are finally catching up with rising sale prices.

Well, this week we discovered they requested an appraisal review on that same property and dropped the value by $35,000!!! I also heard about several other appraisals that came in under value this week for other agents. It appears appraisal issues are far from over.


Perhaps the most frustrating aspect of the appraisal is that it is largely subjective. It is based on data from  comparable properties, but the appraiser chooses the comparables… and the appraiser determines adjustments to be made based on condition, location, amenities, etc. Two different appraisers can come up
with two very diffferent values.

Appraisals have been an issue since the market downturn… first
because values were dropping, then because there weren't enough recently
sold comparable properties to establish value.

Now it's an appreciating market, and the closed data that appraisers use
is behind what is selling right now. Before the market downturn appraisers were largely too lax… unfortunately, now they have overly adjusted the other way and are causing problems for many home buyers and sellers.

After being at opposite extremes, hopefully appraisals will settle back in the middle… where they should be.

Sharlene Hensrud, RE/MAX Results – Minneapolis-St. Paul Realtor


About Sharlene Hensrud

I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity

Related Posts

Thinking about buying a home? Thoughts to consider…

Once you have decided it's time to buy a home, there are some things to consider.  The first thing to think about is how much you can afford.  By talking to a lender, you can get an idea of what you can qualify for.  You also want to think about how much you are comfortable.

Read More

What would you be willing to sacrifice to save to buy a home?

For many homebuyers, the emotional benefits of buying a home are as important as the financial ones. Per the infographic below from Keeping Current Matters, 95% of first-time buyers say they are willing to make sacrifices to make it a reality… with new clothes, new car and social life at the top of the list..

Read More

Connecting: Birdsong Soup to Convention Grill in Edina’s Morningside Neighborhood

This is the first in a series of periodic posts walking neighborhoods, Connecting: Point A to Point B… with Point B often being a neighborhood place to eat! We belong to Birdsong Community Supported Soup Club and pick up our pint of fresh, chef-created soup every week in the southeast corner of St. Louis Park.

Read More