Mortgage lenders often require 2 appraisals on real estate transactions priced over $1.2 million in Miami.
We just jumped that double appraisal hurdle … with a surprising outcome …one I’ve yet to see before .
I wonder if anyone else has encountered this… and if so, please share!. The buyer’s mortgage lender ordered 2 appraisals on a property our clients were under contract on. The mortgage lender confirmed to me that they would go with whichever of the two appraisals came in the lowest. (There would be no averaging, no comparing).
Given the current real estate environment, appraisals can (and do) squelch deals, in literally a heartbeat. This property was extremely difficult to appraise, for a multitude of reasons. I literally spent hours compiling relevant recent comparable sales … Both of us ( listing agent and buyers agent)… provided the appraisers with our ‘comps’.
The appraisers reviewed and evaluated the comparables we provided They each independently arrived at their own assessment as to appraised value … and not surprisingly, with significant discrepancy as to ‘value’ between the two of them.
As ‘promised’, the lender used the lesser of the two appraisals….
Then, two days later, the bank called me. After reviewing the two appraisal reports… THEY CHANGED THEIR MIND ! The lender went with the higher of the two appraisals. That was a first for me … Brilliant! A lender finally reviewing and analyzing the work of the appraiser … making their own judgement call… based on competency !
Comps are unquestionably subjective. Whether we are talking about a Real Estate Agent’s CMA “comparative market analysis” … or an Appraisers ‘appraisal‘ there is subjectivity involved.
Any time you are ready to buy or sell real estate in the Miami area, and want an experienced local real estate agent to assist you, do call. I’d love to work with you. You can reach me on my cellular 305 793-1365 … Call or text anytime, or send me a note here. And if you are looking to buy or sell anywhere in the United States or internationally, I’ll be delighted to recommend and put you in touch with other top real estate agents.