Posted by Linda Simms on July 20, 2003 at 09:51:14:
Drew is right. However it is not due to unscrupulous appraisers. An appraiser has a lot of leaway in how he makes an appraisal. The comps and the plus’s and minus’s he uses, will go a long way in detemining how his appraisal comes out. In general, properties tend to appaise at or slightly above the contract price when buying or selling, unless the the price is way out of whack! The same holds true on refinancing,if the mortgage company who picks the appraiser has a vested interest in a low appraisal. Picking the right appraiser, if you get to pick, can influence how you may want the result to turn out. Providing him ligitiment comps, if he deems them professionally acceptable, will also help. Contrary to popular and most appraiser’s beliefs, it is not an exact science.