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No one wants to overpay for something that will continue to have a higher cost over the years,” explains Omer Reiner , realestateagent and president at Florida Cash Home Buyers LLC. Keep in mind that appraisers are licensed professionals that the lender hires, rather than the seller or buyer.
Linda (who asked that her real name not be used) beat out a dozen other prospective buyers in a bidding war by offering $445,000 and waiving all contingencies. Unfortunately, the appraisal put the house’s value roughly $50,000 below than what she paid. With others waiting in line behind her, the seller wouldn’t budge on price.
To help you out, we’ve put together some practical information to strengthen your responses to a mortgage lender’s appraisal appeal, called a reconsideration of value (ROV). No matter how meticulous you are or how good your appraisal reports are, inevitably, you’ll receive complaints about some of your appraisals.
When an appraiser’s opinion of value is below the contract price, that’s when the carping begins. The number of professional reconsiderations of value coming in are increasing. My advice to agents and sellers is to really analyze the properties that they are using to develop their asking price.
Appraisal Tips For RealEstateAgents As a realestate appraiser with over 30 years of experience, I have seen many changes and challenges in the appraisal profession and the realestate market. I believe that appraisers and agents have a common goal: to help their clients buy or sell a home.
Appraiser and Agent Collaboration is a Good Thing The importance of collaboration between realestateagents and appraisers can be a touchy subject. On one hand, the realestateagent’s main goal is to advocate for their client while the appraiser must be an impartial and non-biased third party.
Pricing a listing correctly is one of the most critical skills a realestateagent can develop. List it too low, and the seller may leave money on the table. Was there an off-market deal or seller concessions? If prices are rising quickly, older comps may be lower than current values. What Makes a Good Comp?
Other nontraditional uses for an appraisal include valuation for insurance companies, helping sellers arrive at a market value to list their home, estate planning, and tax appeals. Other users might be sellers, mortgage underwriting, banks, and contractors. Related posts: Things agents do that appraisers hate.
You’re a realestateagent and after a lot of back-and-forth, give-and-take, offers and counteroffers, you’ve helped your client negotiate a sweet price for their home. You, the seller, the buyer, the lender—heck, even the mailman, are all shocked the deal has fallen apart. What is a Reconsideration of Value?
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