Slandering Appraisers… Fooling the Appraiser

Baggins says:

Sweep that one under the rug with deferred maintenance language and a little quality adjust or something for whatever was in need of care. The answer is not so simple but is rooted in the idea of turn key and those pleasant feelings which come with a well maintained property. Houses are where humans live. It takes a human to perceive the value as much or more than it takes some mechanical process to measure the data. The normal rule of thumb is if the owners neglected this, there is an increased probability they neglected that. Hypothetically, an attentive homeowner does not let the lawn die. Then call up some landscapers and sprinkler guys, let them knock your socks off with outrageous prices. We value land and home together.

Even in their brand new state, there is always a quality difference. It may not be tangible at first, but may cumulate into notable differences over time. The soil report, the structure, the construction, the attentiveness of the workers, the fine finishing, utility hook ups, seasonal care. With aftermarket there can be a big difference with identical houses depending on the methods the builder used down to the methods the owner utilized for care, the differences cumulate with time.

Normative… What’s normal to you? I’d prefer the ruined lawn unit because come what may I’d rather pay cash out of pocket for repairs rather than finance that higher buy price over the term of a 30 or even a 15, which increases the actual cash equivalent expense. I’m thrifty. Presuming a 2x cash equivalent multiplier over the amortized term, it’s ‘normal’ to me to prioritize a lower purchase price. To the next guy, less concerned with cash equivalency. This is the market. Dynamic. Fluid. Full of conflicting interests. Conveniently the diversity of the humans whom buy and humans whom sell does create constant opportunity to make human based decisions based on both feelings and measurable quality.

Staging is a waste of time for a buyer like me, I would prefer the home fully vacant so I can see it completely, flaws and all. When I see a staged home the first thing which comes to mind is what are they trying to distract me from. They pay what they are able and willing to pay, with financing available to them in that location. That’s rooted in the larger economy so no, we don’t predict or forecast anything. We measure the wild and zany purchasing and selling behaviors, adjust them reasonably, and provide a reasonable check to balance.

The juxtaposition of the appraisal position is that we’re often not really needed. But if we were not present as that stopgap, we’d be needed again immediately. Our presence keeps the agents in line as an industry standard. Eliminate the independent check to balance, open the doors for just about everything the industry players might dream up.