Real Estate – A Touch of Grey; Appraisals
Establishing value for a property has become more cumbersome for appraisers, and the banks that assign them. With the ebb-and-flow of the current market, it has been more difficult to establish comparables for a particular property. The drop in inventory has caused a situation that is forcing appraisers to give a “best guess” dollar value for a property. In years past, the appraiser would have plenty of comparables to choose from, thus allowing them to establish the property value based strictly on “Sold” units. Nowadays we are seeing appraisers using “Active” listings, listings that are “Under Agreement”, and “Sold” listings from up to 6 months ago to help support their results. This is taking the black and white out of appraising, and adding in a touch of grey.