Let me share a few appraisal experiences in the Spanish Fork, Utah area.

Two weeks ago I had an appraiser call and ask for my seller's phone number.  I asked, "How can I help you?"  He said, "I noticed a fan in the empty basement and have been searching for any water damage and can't find any."  I told him, "the home has no water damage."  He said, "If I don't speak to the homeowner myself I will write in the report that I suspect the home has some water damage."  I told him, "that would be unfair because that is not true."

Are you kidding!  Are appraisers now CSI detectives?  He told me he spent a bunch of time searching the basement, pulling up carpet and looking everywhere for water and can't find any.  He told me it is his responsibility to find anything he can about the home that may help the bank choose whether to give the loan or not.  I talked to my seller who was furious.  He told me there is no water damage.

If the appraiser wrongfully red flags the home he messes the deal up for the buyer, seller, both agents and brokerages, lender, underwriter and title companies.  Why?  Because he wants to be a super star and discover something that does not exist to help the bank cancel a loan.  It doesn't make sense. 

Let's be considerate and remember you have a family usually moving out and a family moving into a home.  If an appraiser puts something in a report whether that is true or not the bank may decline loaning on the home.  This can be emotionally devastating to the people involved moving their families.  The appraiser finally backed down and did the appraisal after several conversation and the home closed. 

I have seen a few appraisals that have sharply skewed the price downward.  I am all about a fair appraisal.  However, we don't want appraisers to add comps of undervalued foreclosed homes that sold in one day that don't even resemble the subject.

Did the appraisers help the bubble in the 2004-7 era by push prices up?  Now they are doing the opposite and it feels like they are trying to push the prices down. I guess the banks have the appraisers scared of overvaluing the home.  This makes them caution on the side of a low appraisal.

I have a home this week that got an appraisal.  All the homes in the neighborhood are built by the same builder.  It was Fieldstone homes down in Spanish Fork.  Our house has a 3 car garage and the other homes have 2 car garages.  The appraiser doesn't seem to want to give us hardly anything for a extra garage.

In my opinion an extra garage should be worth about $10k to rebuild.  If you include the flatwork, framing, window, garage door, roof and walls.  The appraiser said that $10k is way too much and he will give it a small allowance.  If the appraiser thinks a 3 car garage is only worth like $4k I would like him to come and build an extra garage onto my home. 

I just want fair and honest appraisals.  I remember back in the 2004-7 era where most appraisals seemed to come in a couple thousand above asking.  Now it is the other way around.  Too many appraisals are coming in under asking price that shouldn't. On a positive note.  I do appreciate the many good and fair appraisers out there that are doing a good job.

Welcome to my Utah County Real Estate blog!  Team Teasdale Realty is located  in Mapleton, Utah.  Our team combines proven traditional real estate practices and represents the leading edge in the future of real estate marketing by merging internet technologies, service, communication, information and analysis with those traditional practices to provide our clients with an exceptional real estate experience and superior marketing.

Paul Teasdale, Principal Broker
ABR, CRS, e-PRO, QSC, Finance  BYU
16 Years Experience, 850+ Homes Sold
Team Teasdale Realty, Utah County Real Estate
Phone: 801-491-7653