Don't Shoot The Messenger

March 6, 2018


You get a copy of the appraisal report from the bank.  Your eyes skim through the report until you arrive at the estimated value. Your blood begins to boil as you see that the estimated market value is less than what you had anticipated.  Now the bank is not going to lend you as much as you would like and the home that you fell in love with appears to be unattainable. Did the appraisal kill the deal? As an appraiser, I would suggest that the answer to that question is really a matter of viewpoint. To a realtor, buyer, seller or loan officer, the answer is likely to be "yes". And if I am being honest, if I were one of these individuals involved in the transaction, I would probably feel the same way.  In this situation, some of the parties involved are not just disappointed at the information.  They are angry at the appraiser. Some of the participants in this situation may feel strongly that the appraisal is worthless because it came in lower than anticipated. Why?