Jimmy  Moore (Denton County Home Inspection)

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Rainmaker
1,672,495
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

The value varies by perspective:

Dec 15, 2018 12:37 PM
Rainmaker
3,904,824
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I've seen significant fluctuations myself on homes that are not cookie cutter. In one case on a $460,000 sale we had four appraisals and from the low to the high there was a $50K differential.

Dec 15, 2018 12:42 PM
Ambassador
4,090,493
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

An appraisal is ONE persaon's opinion - and like noses, they're all different!

I had one that had 3 different appraisals - one at $725K, one at $875K and one at $950K. As I said, 3 different 'opinions!'

Dec 15, 2018 05:14 PM
Rainer
132,823
Ken Jones, ASA | Broker & Appraiser
Kenneth J. Jones, Inc./Global Valuations - Newark, NJ
Commercial Real Estate Broker & Appraiser

Jimmy Moore As a State Certified General Real Estate Appraiser and certified appraisal educator I can tell you 2 facts about appraisers and appraisals:

1. An appraisal isn't a definitive "end-all be-all" value; it's only one person's opinion based on the information they have available to them and interpreted by their experience and intellectual ability.

2. An appraised value merely reflects an opinion of value as of a specific date; it's not valid the next day. For example, value opinions stated in June 2008 were significantly higher than value opinions of the same properties in October 2008.

Too many people place too high a level of credibility on something that really should simply be between a buyer and a seller.

If the buyer wants to pay more than a given opinion or if a seller elects to sell for less than a given opinion, it's really nobody's business.

Appraisals exist because educated people with no common sense run the government and banking institutions.

However, the appraisal industry is just about dead.

The average age of an appraiser is over 65 years old; nobody with any sense at all is entering that over-regulated and under paid industry.

Let me know if I can be of any further help with this subject.

Dec 15, 2018 01:17 PM
Rainmaker
2,062,259
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

I am with Carol Williams 

And buyers and sellers always should get a fair deal in transaction!

Dec 15, 2018 01:03 PM
Ambassador
3,297,780
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Whatever the house sells for IS fair market value.  The appraisal is a professional's opinion of the value.  

Dec 15, 2018 12:22 PM
Rainmaker
359,624
Joseph Domino 480-390-6011
HomeSmart - Scottsdale, AZ
Real Estate Made Easy

Everyone involved Buyer, Seller, Appraiser, Agent is trying to arrive at the best price. In the end if they can agree then that is the price.

Dec 15, 2018 12:48 PM
Rainmaker
1,231,549
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Ditto, Ken Jones 

Dec 15, 2018 02:16 PM
Rainmaker
868,971
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

The value of  a home is exactly what a willing and able buyer and seller agree upon.

All the other stuff attached are for OTHER purposes such as financing.

IN the end the buyer paid to much and the seller sold too low. That is the objective, everyone feels pain, and that is how fair deal works.

Dec 15, 2018 12:02 PM
Rainmaker
867,889
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

 I am sorry if this seems harsh. As a builder and inspector, you are not qualified to judge the value of a home.

 

You are, of course, entitle to your opinion. I have heard many opinions stated regarding the value of a home. Opinions of buyers and sellers often vary.

I think you are, perhaps, not aware of the role of an appraiser. First, they are individual professionals and their opinions, like opinions of doctors, can vary from person to person. Second, the role of an appraiser, in many cases, is to determine if the lender’s collateral – a house – is worth more or less the amount agreed to by the buyer and seller. If the appraiser is trying to place a value on a property for a refinance or equity withdrawal, the appraiser may place a different value on the property. If the purpose of the appraisal is to determine a value of a home at the time of the owner’s death in order to settle an estate or determine tax liability, there may be a different value placed on the property.

Appraisal is not an exact science.

Dec 15, 2018 03:30 PM
Rainmaker
1,596,476
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

I like Carol Williams and Annette Lawrence , Palm Harbor, FL 727-420-4041 answers and all of them.

Dec 15, 2018 03:28 PM
Rainmaker
3,955,677
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

There are many answers that should give you both additional insight as well as some possible confusion.  My answer most closely aligns with the response provided by Chris Ann Cleland and Kathleen Daniels.

Dec 15, 2018 02:24 PM
Rainmaker
1,837,185
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

Obviously we should NOT see fluctuations but of course we do Jimmy Moore and it can be for a variety of reasons (honest and dishonest). How much variation do I expect? I don't ever because in my market all the appraisers are honest and accurate.

Dec 15, 2018 02:10 PM
Rainmaker
831,518
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

I had 2 appraisals on same property that were more than $60,000.00 apart.

Dec 15, 2018 02:01 PM
Ambassador
3,000,915
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Opinions of value are what an appraisal represents. 
In my market, that opinion is worthless to many buyers as buyers are willing to pay far more than the value an appraiser gives. 

Dec 15, 2018 01:22 PM
Rainmaker
2,610,170
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

You can appraise all you want. In the end, market value dictates. However, try telling that to the bank who swears by the appraisal or the buyer if it comes in lower than the contract price. Real Estate is not for guppies

Dec 15, 2018 12:56 PM
Rainmaker
5,364,579
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

I think that Annette Lawrence , Palm Harbor, FL 727-420-4041 gave you a good answer. A

Dec 15, 2018 12:18 PM
Rainmaker
5,570,642
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

it's not an exact science.... in my area, I've seen a 3% variable in price amongst appraisals...

Dec 15, 2018 03:39 PM
Rainmaker
4,018,174
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Appraisal is an opinion of value. Some are closer to reality than others.

Dec 15, 2018 12:19 PM
Rainmaker
3,296,977
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

The problem is with the system they use to hire appraisers and no longer does being good, local or experienced count. In NH we have a problem with MA appraisers coming up to NH and appraising hmes when they dont know neighborhoods, towns, cities or values. 

Dec 15, 2018 05:38 PM
Rainmaker
6,366,274
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Buyers seek the bargains.

Dec 15, 2018 03:22 PM
Ambassador
2,545,439
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

      Not an issue with cookie-cutter subdivision houses with recent comps.  It's those "unique" properties that will get different valuations.

     Financing aside, it's ultimately the Buyer's call what a house is worth.

Dec 15, 2018 06:06 PM
Rainmaker
502,276
Susie Kay
Ultra Real Estate Dallas Fort Worth - Plano, TX
North Dallas Specialist

Yes, appraisal is an opinion of value.  In other words everyone has a different opinion.

Dec 15, 2018 09:08 PM
Rainmaker
966,503
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Carol Williams has the right answer for this one

Dec 16, 2018 04:38 AM
Rainmaker
1,135,987
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

 For tract homes like west coast. The variance is very minute. +/- 1% if that much.

Dec 15, 2018 06:16 PM
Rainmaker
3,871,198
Richard Weeks
Dallas, TX
REALTOR®, Broker

Appraised value vs what someone is willing to pay and what someone is willing to sell for.

Dec 16, 2018 01:05 AM
Ambassador
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Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

True value winds down to what people are willing to pay, of course this can be influenced by good or bad marketing and salesmanship.

Dec 15, 2018 08:38 PM
Rainmaker
1,509,902
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Yes. Depends what comps they used. 

Dec 15, 2018 07:10 PM
Rainmaker
4,733,183
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I see some large differences in appraisals too.

Dec 20, 2018 10:51 AM
Rainmaker
4,433,483
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

No idea.

Dec 19, 2018 03:25 AM
Rainmaker
3,985,771
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Appraisals are like us doing a moret. 

10 different people could yield 10- answers

Dec 17, 2018 04:55 PM
Ambassador
3,020,797
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

An appraisal is one man's (or woman's) opinion on one day based on comps they chose.  Two days later there could be all new comps.

Dec 16, 2018 01:18 PM
Rainmaker
1,361,528
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I don't see much of a difference between appraisals anymore, unless one appraiser is out of the area.  As to "worth", they are always sold for what they are worth, it's just a question of will the bank lend that much, hence the appraiser.  Appraisers don't determine worth, that's what the free market does.

Dec 16, 2018 10:02 AM
Rainmaker
831,025
Peter Mohylsky. Broker Associate
Miramar Beach - Santa Rosa Beach, FL
THE BEACH IS OPEN AND WAITING FOR YOU

Agreed but really no surprise here.  People consider an appraisal a holy grail type of document.  But they can be worthless.  CMA by a decent professional is of greater value.

Dec 16, 2018 06:45 AM
Rainmaker
4,799,306
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I really haven't seen a huge difference in appraisal values when conducted by independent professional appraisers.

Dec 16, 2018 06:32 AM
Rainmaker
665,453
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

For a variety of reasons I see appraisals come in at differing amounts. It's a subjective science & not everyone sees the value of the subject through the same lense. 

Dec 16, 2018 05:39 AM
Rainmaker
1,707,297
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I am having no issues.

Dec 16, 2018 04:39 AM