Many factors help appraisers develop an opinion of value, which might result in an appraisal that doesn’t match the property’s sale price.
An appraiser is there to give their unbiased professional opinion of a home’s value. Part of their job is to not have an emotional connection with the property. A homeowner usually has a figure in mind, which often reflects their attachment to the home itself.
Attractive vs. added value
What may seem like an attractive feature to a homeowner might not add value to the property. While some home improvements can add value, it’s important to not exceed community norms.
Market trends and conditions
Appraisers are aware of the local market trends, and have knowledge of whether the area is up-and-coming or already established. They also are aware of market conditions at the time of an appraisal. No matter the condition, a fast or slow market can influence the opinion of value of a home. If the market is slow and there are fewer buyers and homes being sold in the area, the property likely won’t sell for its initial list price.
There is always the possibility that the listed price for a home was too high or that the owner under or overpaid. Both could sway the current listing price when an individual goes to sell. There are factors that can be considered to determine if that’s the case. If a consumer doesn’t like their home appraisal, there are steps they can take.