My Favorites
Appraisals in Reform
Appraisals are a vital aspect of the real estate market, and in a recent article released by the Florida Association of Realtors (FAR), communications between appraisal, home builder, and realtor groups have taken place in an effort to fine-tune the appraisal process and eliminate errors. Some of the most commonly seen challenges to appraisals done in today's market include:
1) Appraisers using foreclosed or distressed properties as comparables without taking into account the proper adjustments
2) Appraisers working areas that they are not completely familiar with, leading to inaccurate estimates
3) Using only the exterior of a property to determine value when comparing to distressed, or foreclosed properties (not taking interior issues into account)
Having a good appraisal on your home is a valuable tool in getting your home sold for the best possible (and most realistic) price. When appraisals and numbers go awry, it can reflect negatively on a sale, should a property get appraised at a much lower value than expected. According to Charles McMillan, president of the National Association of Realtors, "An accurate appraisal is an important part of any real estate transaction, and reforming the appraisal process is critical to the nation's housing recovery," (courtesy of FAR).
