The Value of Real Estate Appraisals

The Clark Team just sold 769 Silversmith Circle in Lake Mary, Florida and we wanted to share with you how this sale is an example of how important appraisals are. In this instance, we listed the property and marketed it as we always do and found a buyer very quickly. The buyer conducted inspections and then came the appraisal. The appraiser in this instance did what’s referred to as a “drive by” appraisal where they basically relied on local comparable sales and didn’t bother to enter the home to determine if there were other factors that could affect the homes value. As a result of this “drive by” approach, the appraisal came in below what the executed contract price was causing the contract to become null and void. We couldn’t arrive at viable solution so the buyers decided to walk away from the home after spending $700-$800 dollars for inspections and appraisals. Our clients were concerned but they had faith in the system and we relisted the property and found another buyer in just a couple weeks. This buyer went through the same steps but the appraiser in this instance actually took the time to enter the home and observed the added value within the home like granite counters, custom cabinetry, completely renovated bathrooms and more. As a result, the appraisal came in where we needed it to and the sale was completed. It’s concerning to see that two different appraisers within just a few short weeks or months of each other came come to very different opinions on value. The moral of the story hear is to make sure and communicate with the appraiser. In our experience, most appraisers appreciate hearing from Realtors who can provide more in depth insight into the homes value. Every deal is unique and presents its own challenges and everyone sellers, buyers, and Realtors simply need to work together to find a solution that’s a win for everyone involved.