Have you ever heard it said , “A good appraiser is hard to find”. What definition do you use? I have been around long enough to know there are a few definitions for a “good appraiser”.
The real estate appraiser’s definition of “a good appraiser”: A good appraiser is one who has been well trained through education, experience and mentoring . He understands if the value is off, someone relying on his report could suffer loss . The good appraiser has good and extensive data sources and knows his area of service well. He has a good idea of the ebb and flow of buyers and sellers in the market place , both from his extensive research material and from his experience with the market area .
When including sales comps report, he strives to provide the most recent sales which are most comparable to the subject of the appraisal . Property and locational differences are differentiated based on what market values indicate . The good appraiser also considers comparable listings and comparable pending sales as (after market based adjustments) they will tend to set the high end of value. The certified appraiser reconciles all of his research, analysis and reasonings into a final value that is not affected by biased individuals connected with the transaction. The result will be an unbiased home appraisal.
From over 23 years of appraising, the following is what I have come to understand the definition of a good appraiser is, from the view point of view of:
Divorcing spouse A: A good appraiser is one who brings the value in LOW because I want to buy my EX out of the house.
Divorcing spouse B: A good appraiser is one who brings the value in HIGH because I want my EX to buy me out of the house.
A few Commissioned loan agents: A good appraiser is one who will, look at MLS for comps in the neighborhood and state what the value will be before doing the appraisal; use whatever comparable sales will indicate a high value (even if they are not the most comparable); not state things about the property or location ( which might kill the deal ); will change the report when the truth about the property does not match underwriter/lenders guidelines or requirements; will bring the value in for what ever will make the loan work. (Disclaimer: the majority of commissioned loan agents I work with are very professional and do not use the above tactics)
All Lenders (the one with the money): A good appraiser will be unbiased in his appraisal and communicate true market value.
It is kind of funny that the definition of “a good appraiser” can be so varied. In the face of being labeled “a bad appraiser” by those who use another definition, the good appraiser will always stick to his definition, no matter the cost.
Chas W. Leeper, SRA ,real estate broker for over 30 years; California Certified Appraiser ; an author, sportsman and grandparent. He is currently the Chief Appraiser of Leeper Appraisal Services . Click below for more info. about Chas Leeper, SRA www.leeperappraisal.com/principalappraiser.htm or call 949-574-5534.
