Some may say property appraisals and Agency Relationships
don’t fall into the Financial conversations….think again.
We recently experienced an appraisal issue on the sale of a
listing so I am very much in favor of the changes that started earlier this
year and will be phased in over the course of the next few months. In this case
the property listed had amazing views a resurfaced pool, new fenced in rear
yard and total updated renovations over the course of the past 5 years. The
appraiser and I had extensive conversations about the condition of the property
and every dollar spent on updates outlined for him. The problem was a house a
few doors down sold for a LOT less and he refused to make adjustments for the
improvements. Adjustments for condition weren’t required, detailed photos of
the interior weren’t required and he hit the easy button. Everyone else involved (including the buyer
and their agent) felt the value was there
but the appraisal fell short of contract price. The end result was an agreement between buyer
and seller to split the difference. A reasonable position and one made possible
by close communication between realtors and their customers with the best
example of Transaction Broker relationship I’ve seen in a while. Open, direct
and honest discussion vs. a debate that would have resulted in disappointed
buyers and sellers.
So, YES, appraisals, appraisal requirements and Agency
Relationships matter to the bottom line.
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