The residential real estate market is getting better but there are still a few challenges. Quality inventory, inspections, financing, property insurance and appraisals are some of our current issues. Yesterday's concern was appraisal.
Yesterday morning I met the second appraiser for the second appraisal of significant lakefront home. (Two appraisals are now standard at some lending institutions when dealing with properties and/or loans of this value.) The appraiser was polite, thorough and very kind. Unfortunately, he didn't know the name of the lake in the back yard or recognize any of the streets I was referring to when we discussed comparables. The alarm in my head began to sound as I realized this appraiser was clearly not local.
This morning I read an article in a special issue of FLORIDA Realtor magazine. Geoff Sugden who is an appraiser in Bradenton, Florida came up with an interesting suggestion. He makes the point that as Realtors, we write into the contract who pays for title insurance, in what county the property should be closed and often times that the appraised value must meet or exceed the contract price. Then he asks a very good question. He asks, "Why not add the requirement that the appraiser must be assigned from the subject county or an adjacent one?"
Thanks to Mr. Sugden for his question. I can see some minor issues, especially concerning quick closings but I think it's possible that this could help. It will be something new to consider when I write my next offer.
Yesterday morning I met the second appraiser for the second appraisal of significant lakefront home. (Two appraisals are now standard at some lending institutions when dealing with properties and/or loans of this value.) The appraiser was polite, thorough and very kind. Unfortunately, he didn't know the name of the lake in the back yard or recognize any of the streets I was referring to when we discussed comparables. The alarm in my head began to sound as I realized this appraiser was clearly not local.
This morning I read an article in a special issue of FLORIDA Realtor magazine. Geoff Sugden who is an appraiser in Bradenton, Florida came up with an interesting suggestion. He makes the point that as Realtors, we write into the contract who pays for title insurance, in what county the property should be closed and often times that the appraised value must meet or exceed the contract price. Then he asks a very good question. He asks, "Why not add the requirement that the appraiser must be assigned from the subject county or an adjacent one?"
Thanks to Mr. Sugden for his question. I can see some minor issues, especially concerning quick closings but I think it's possible that this could help. It will be something new to consider when I write my next offer.
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