The Real Truth about Appraisals!


1.       Many homebuyers today are writing their offers to purchase subject to the property appraising at or above the sales contract price so they do not miss a good opportunity.


2.       The appraiser’s estimate of value reflects the most probable price the property will sell for without special considerations or circumstances.


3.       It is an objective opinion of value.  It is not an exact science!  If three appraisers appraised the same property, they would assign three different estimates of value.


4.       Most sellers, buyers, and lenders want an appraisal that reflects the market value rather than the insured value, assessed value, sentimental value, or other types of value mentioned in our primer – the eleven kinds of value.  Go to for your copy.


5.       The best indicator of market value for residential property is found by applying the sales comparison approach.  This means that past sales of comparable properties in the last six months will be compared to determine value.


6.       An appraiser’s estimate of value typically reflects the current market conditions in the subject property’s marketplace.  This can change dramatically if market conditions shift.  I have seen changes of as much as 20% in one year!


7.       Most lenders base a buyer’s loan amount on a percentage of the sales price or the appraised value of the property, whichever is less.


8.       One of the services that make the Sanford Systems’ seller clients so successful is that we meet the appraisers at the home, prior to their final determination as to value and we give them comparables that support the value we need the appraisal to “come in” at to close the transaction.