Help ensure home appraisers in Northern Virginia and Montgomery County, MD have ALL the data they need

June 26, 2012 — I often get questions about appraisers not fully appreciating the rising value of  homes for sale in parts of Northern Virginia and Montgomery County, Maryland. It’s no wonder because more mortgage loan officers and RE/MAX colleagues are sharing experiences of appraiser reluctance to report local appreciation.

A home sale contract does not have to be jeopardized because the appraiser does not have — or does not collect — all the relevant facts. CREDIT: TotalMortgage.com

The impact on buyers and sellers can be significant and maybe even kill a deal. When an appraisal comes in much lower than the mutually agreed-upon contract price, the buyers typically need to revise their loan request. That could mean having to renegotiate the contract price with an unhappy seller. What’s worse, this may not even be possible.

Sometimes the appraiser will do his or her job but experience push-back from the appraisal management company that hired him to “revisit” an upward adjustment, e.g. get rid of it.

A recent poll of members of the National Association of Realtors fthroughout the U.S. found 33 percent reported appraisal problems. This is the single most important valuation obstacle to seeing a sustained recovery in regions such as the Greater Washington, DC area where we have multiple economic indicators that justify rising home prices.

The bottom line: make sure agents on both sides of the transaction have accurate data on “comparable” sales or pending sales. This can demonstrate how a market is improving, especially over the past three months. Make sure the appraiser sees that data. I do this EVERY time for my clients.

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