The Limits of Statistics
in Valuing Homes
It’s only Wednesday, and I’ve already fielded three calls this week from appraisers wanting “scoop” on recent, closed sales that I’ve handled.
A year-end pick-up in deals?
Well, that, too.
However, in each case the appraiser was working on a refinancing application.
To approve the new loan, the lender needed to establish current market value, which in turn means performing an appraisal and identifying/analyzing the Comp’s — just like they would for a sale.
The fact that appraisers need to talk to actual, live Realtors — who can fill them in on floor plans, updates (or not), and other home features not otherwise captured in statistics — should give anyone relying on Trulia, Zillow, etc. for home values pause.
P.S.: Time permitting, I’m happy to talk to appraisers. Often times, something I know can be the difference between a deal (or refinancing) happening — or not.
In an environment where banks are looking for any excuse to shoot down a deal, as a plugged-in, on-the-ground expert, I’m ideally positioned to serve as a counter-balance.
Of course, a healthier, more active market benefits everyone.
