Appraisal Reconsideration “True”or “False”
Consider the following scenario, then answer “Yes” or “No”:
An appraisal on a recent home sale comes in low.
The next week, a (very) similar home that had been “Pending” at the time the appraisal was done subsequently closes . . . . for well above asking price.
Can the closed transaction — officially now a “Comp” for appraisal purposes — be used to try to raise the (low) appraisal?
Answer: “No” — at least not without revisiting all other subsequent activity.
Single Frame vs. Movie
That’s because an appraisal value is only considered valid as of a moment in time.
Think of it like a “snapshot” of a home’s value (or if you have an accounting background, as a balance sheet).
It’s all a bit reminiscent of my Econ 101 teacher in college, who “encouraged” students who felt their papers were mis-graded to voice their concerns.
But, that policy (if you can call it that) came with a caveat: he wouldn’t review merely the contested part of the essay, but would re-grade the entire paper.
And — wouldn’t you know it — he always seemed to find an equal number of offsetting demerits that rendered any upward adjustments moot.
