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, as values are rising, appraisals are still causing problems. I have experienced several transactions this year where the appraisals came in under value. Today we got appraisal results for a property I was concerned might come in with a low appraisal value… and it didn't… HURRAY!!
Does this mean all appraisal problems are over? No… appraisals are subjective, so two different appraisers can come up with two diffferent values. However, it could be a sign conditions are improving.
It's an appreciating market, and the closed data that appraisers use is behind what is selling right now… but hopefully appraisals are finally catching up with sales.
Sharlene Hensrud, RE/MAX Results – Minneapolis-St. Paul Realtor
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