What is appraised value?
In the Bend Oregon Real Estate market, as with the rest of the United States, appraised value is the opinion of the appraiser regarding the fair market value of a property.
The appraisal is based solely on the appraisers experience, knowledge, analysis of the property and also analysis of comparables or similar homes that have sold in the area recently.
Home Appraisal Problems
Sometimes, Bend Oregon home buyers, or sellers, may encounter problems with their home appraisal and over the last few years, many lenders in Bend, and across the country, have been demanding additional reviews of appraisals and even do-overs of the appraisal all together.
Some of the common reasons that lenders can demand more scrutiny of an appraisal are that the borrower has a credit score that’s marginal at best, or they have a higher than average debt to income ratio.
Home Appraisals during Hot Real Estate Markets
Contrary to the opinion of many home buyers, appraisers don’t always appraise the value of a home higher just because home values have been increasing in a certain area, the opposite is also the case during declining Real Estate markets because, appraisers in the Bend Oregon Real Estate market and nationwide have been known to increase a home’s value on the appraisal even though the Real Estate market is a tough one.
What Are Inadequate Comps?
Yes it’s possible for a home appraiser in the Bend Oregon Real Estate market to deem comparable homes in the area inadequate because, they were either too far away from the home that they are currently appraising, or they may have been a short shale or foreclosure when they were sold.
It’s not uncommon for lenders to call an appraisers work into question if they have to expand their search for comparables because there are no comparable homes for sale that are close by, in the area; some lenders may order a second appraisal if they are not satisfied, much to the chagrin of the buyer or seller who is eager for their Real Estate transaction to move forward.
What is your view on home appraisals? Feel free to leave me a comment.
To learn more about home appraisals on the Bend Oregon Real Estate market or to view homes for sale in the area contact me today by calling (541) 383-1426.