Understanding the Value of Your Home - The Difference between a Realtor's assessment and an appraisal
In a changing real estate market it is essential to keep in mind that the market value (the price a buyer will pay for your home is NOT:
The amount of money you put into it
What you need out of it
What your neighbor’s home sold for several months ago
What Zillow says its worth
What the appraiser valued it at during your last refinance
An appraisal is an unbiased estimate of what a buyer might expect to pay - or a seller receive - for a parcel of real estate, where both buyer and seller are informed parties. In a declining market the appraiser is utilizing sales comparables that are as much as six month’s old (add a 45 day escrow to the 6 months and you realize how old these comparables can be). Active listings (your competition - what buyers will be comparing your home to) are more important. Pending escrow comparables are also analyzed.
A Realtors market snapshot should be a more accurate view of today’s market, not last month's. During the last several months, appraisals have been coming in high (the value has been over the contract selling price). But if an appraisal is “supposed to be” what a buyer might expect to pay”, why is the appraisal not a reflection of what the buyer actually paid? Simply because the appraiser is looking at old comps - not active listings and recent “in escrows”. Whether an appraisal or Realtor's Market Assessment, the current market must be given the closest scrutiny, unless of course you only want to know what your home was worth six months ago 
Posted by Phyllis Harb at 10/30/2007 12:31 PM 
Categories: All about Money, Lenders, A Seller's Perspective
Categories: All about Money, Lenders, A Seller's Perspective
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9/20/2008 6:58 AM
Los Angeles Real Estate Blog wrote:
Just in the Multiple Listing Service this morning....And two homes caught my eye: The first is listed at $995,000 and has been on the market for 68 days. The “private agent remarks” read: "This is a probate sale probably without court confirmation. Sold As-Is without warranties expressed or implied. Property is court appraised at $1,015,000. Executor can accept any offer in excess or 90% of that amount which is $913,500" This is one more reminder that what a home appraises for and what a buyer is willing to pay are two different things. The second ... -
9/21/2008 6:48 AM
Los Angeles Real Estate Blog wrote:
Just in the Multiple Listing Service this morning....And two homes caught my eye: The first is listed at $995,000 and has been on the market for 68 days. The “private agent remarks” read: "This is a probate sale probably without court confirmation. Sold As-Is without warranties expressed or implied. Property is court appraised at $1,015,000. Executor can accept any offer in excess or 90% of that amount which is $913,500" This is one more reminder that what a home appraises for and what a buyer is willing to pay are two different things. The second ...
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