Appraisals

February 24, 2008 by donna.

Last week I was amazed when I saw a property in Sabino Mountain come back on the market at the same price it was a few months back, after another house with the same floorplan and located on the same street had just sold for approximately $50,000+ less then this listing. There is no doubt the appraiser is going to use the comparable of the house that sold for much less, especially since it had similar upgrades as the house that just sold in December. I keep wondering what are they thinking? Did the agent advise the Sellers properly? I would not have taken this listing at this price, since even if they get lucky and it sells much higher than the last house sold, which is very unlikely in this market, it won’t appraise. Two-story houses are unlike one-story houses that attract many buyers who put a lot of cash down and as a result, the appraiser is not as strict. Most two-story buyers put 20% or less down and the appraisers are very, very conservative these days, so this house has little chance of appraising for much more than the last one that sold.

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