Appraisal - What is it?

Appraisal. What a weird word, right? Like, think about that word. What does it even mean? Well, it's funny because in the industry we have all different types of appraisers. So, an appraiser is someone much like a certified inspector. They've been through apprenticeship and they are good on the topic. They know exactly what that house is worth...or do they?

So in this field, we definitely have had some bad appraisals and good appraisals. And so it's just an opinion of what one person thinks that house is worth. And it really doesn't matter if it's VA, FHA, or just conventional. It doesn't really matter. It's not his or her opinion about what the house is worth.

Well, some appraisers start nit-picking. Oh my goodness! I had one appraiser. He was out of his frame of what he needed to be looking at. He was going to drive me up a wall on this house. He just kept it. It was a conventional loan, so really, conventional loans are just yes or no. Does it meet value? All of that. It's not much more than that.

Though, he was so concerned over wood rot and things like if a shingle was crooked. It was crazy. But when you look at appraisers, their job is to find out if this house meets the criteria for what kind of condition it is in, and does it equal the other houses in the neighborhood. It's really a yes or no question.

But the truth is, it's a necessary evil in our industry and we have to play by their rules. So, if you get a bad appraisal, don't fret. Not all is lost. There are ways we can challenge appraisals. There are also ways we could ask for another appraisal. So, there are things your lender can do to help us get through this if we get an appraisal that's just too crazy.

Well, there's the scoop. Edna Wilson, your Hometown Realtor. As Hometown as Apple Pie.