I have heard it said , “A good appraiser is hard to find”. What definition do you use? I have been around long enough to know there are multiple definitions for a “good appraiser”.
The real estate appraiser’s definition of “a good appraiser”: A good appraiser is one who has been well trained through education, experience and mentoring . He understands if the value is off, someone relying on his report could suffer loss . The appraiser has good and extensive data sources and knows his area of service well. He has a good idea of the ebb and flow of buyers and sellers in the market place , both from his extensive research material and from his experience in the neighborhood . When including comparable sales report, he endeavors to use the most recent sales which are most comparable to the subject property . Physical and locational differences are differentiated based on what market values indicate . The good appraiser also considers comparable listings and/or pendings as (after market based adjustments) they tend to set the upper limits of value. The certified appraiser reconciles all of his research, analysis and reasonings into a final value estimate that is not influenced by biased persons connected with the transaction. This will produce an excellent home appraisal.
From over 20 years of appraising, the following is my understanding that the definition of a good appraiser is, from the view point of view of:
Divorcing spouse A: A good appraiser is one who brings the value in LOW because I want to buy my EX out of the house.
Divorcing spouse B: A good appraiser is one who brings the value in HIGH because I want my EX to buy me out of the house.
A few Commissioned loan agents: A good appraiser is one who will, look at a few sales in the neighborhood and state what the value will be before doing the appraisal; use inappropriate sales to reach a high value (even if they are not the most comparable); not state things about the property or location ( which might put off the underwriter/lender ); will change the report when the truth about the property does not match underwriter/lenders guidelines or requirements; will bring the value in for what ever will make the loan work. (Disclaimer: the majority of commissioned loan agents I work with are very professional and do not use the above tactics)
All Lenders (the one with the money): A good appraiser will be unbiased in his appraisal and communicate true market value.
It is kind of funny that the definition of “a good appraiser” can be so varied. In the face of being labeled “a bad appraiser” by those who use another definition, the good appraiser will always stick to his definition, no matter the cost.
Chas Leeper ,real estate broker for over 34 years; a certified and designated real estate appraiser ; an author, outdoors man and grandparent. He is currently the CEO of Leeper Appraisal Services . More information about Chas Leeper, SRA can be found at : www.leeperappraisal.com/principalappraiser.htm or call 949-574-5534.
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