Philip A. Raices, 1 of the Most Knowledgeable Brokers on the Net! (Turn Key Real Estate)

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Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

COMPS should only be 90 days old or newer in 2022 or you're misleading your buyer / seller. Our market has changed monthly since March; older than 90 days is negligent in San Diego this year.

With a seller I never worry about the appraisal, we price'em right.

With a buyer I prepare them for the cash layout possibility to cover the gap by showing them the comps.

I've had 3 unexpected appraisal issues as a buyers agent in my career, appealed all 3 , lost all three- they are so difficult to overturn unless you can prove negligence.

Nov 16, 2022 06:52 PM
Debe Maxwell, CRS | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

I share my BEST comp that the appraiser missed and have had great luck doing that. I am CONVINCED that appraisers don't use ANY comps other than those in MLS. Just like agents, appraisers need to use private sales as comps.

Sadly, they don't use those private sales but, once I point those out, I haven't been denied the adjustment.

Hope this helps and good luck to you, Philip!

Nov 16, 2022 10:39 PM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

The buyer can do a rebuttal, get an independent appraisal done, ask the seller to meet halfway or find another property. I am seeing a lot of price reductions, less multiple offers and increased days on market here.

Nov 16, 2022 05:37 PM
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

When a Seller tells me he/she wants to list for $ I do my best to guide them to the proper number... that being said I may actually agree with the appraiser. If I KNOW it's priced right and the Appraiser is low I will give him comps and what ever else I need to back up my line of thinking and see where it goes from there Philip A. Raices .

Nov 17, 2022 08:24 AM
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Case by case. Some sellers are willing to reduce price some, some buyers are willing to contribute more cash if they want the property. Other times, the appraiser might have overlooked something. I once had one come in around $5000.00 low. The appraiser told me some of the switches weren't working in the bathrooms and that he didn't know what they were for. I told him that the switches were for the heated floors under the tile. He said, oh, ok, then I'll raise appraisal $5000.00+. Also check to see if they looked at sales that weren't in the mls.

Nov 17, 2022 06:28 AM
Brenda Mayette
Miranda Real Estate Group, Inc. - Glenville, NY
Getting results w/ knowledge & know-how!

Luckily I've had only 2 appraisal issues in the past 2 years and both were genuinely expected so neither were a surprise to the seller.  I would think most appraisals lately have no problem coming in where they should be now that data has caught up.

Today, preparation of a buyer or seller rests heavily in education (it really always does).  They have to understand the role of supply vs demand, the impact of increased interest rates to budgets and local issues instead of tuning into the national news sources.  

Nov 17, 2022 04:48 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Was not an issue when I was active. Only happened occasionally with an out of area appraiser and the issue was usually resolved.

Nov 17, 2022 03:48 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Appraisers are using mostly - perhaps only - the comps they find in the MLS.

Look hard, search for private sales that didn't go through MLS, then bring those to the attention of the appraiser.  Chances are they will get used, the property will sell.


Nov 17, 2022 01:36 AM
Ryan Huggins - Thousand Oaks, CA - Thousand Oaks, CA
Residential Real Estate and Investment Properties

It's been years since I've seen an appraisal come in low.  I meet with the appraisers, I give them comps (usually they already have the ones I found), and I tell them the wonders of the house and how many offers we had.  Sometimes, I've had the appraiser want to buy the house.


I of course let the sellers know that problems are always a possibility.  Luckily for me, most of the appraisers out there are ones I've worked with before and there hasn't been any issues justifying the price, especially if there are higher comps out there.  Last appraiser said "This is a no-brainer."

Nov 16, 2022 08:27 PM
Andrew Mooers | 207.532.6573
Northern Maine Real Estate-Aroostook County Broker

     For starters don't take over priced listings. Wait, be the next agent or broker who actually sells the property. Second, study comps that you hand picked for the appraiser as the best and then look over ones he/she used. One was a foreclosure? Not a comp, too many adjustments or wrong weighting? Let lender know.

     The appraiser is done, not going to redo appraisal or change comps. I had a US Border Patrol agent house sale that came in $45,000 out of whack. Big gap for my small rural Maine market for the time. Bank did buy into case of how wrong comps were used. It happens, flawed appraisal.

     So 2nd appraiser, told nothing about 1st one's folly. Came in on the money, $45,000 higher.

     If bank would not have allowed the second appraisal seller paid for, neck rein that listing sale would of happened. Starting over at new bank to get different appraiser, higher amount and front row tickets to a real estate closing Philip A. Raices .

     Easy in broad brushing and summing up the market for the entire country in public facing format. You write "Since the market has changed from moderate to more serious across the US" is not what is happening in my real estate sandbox. Low inventory, high demand, many cash sales continue. 

Nov 16, 2022 07:16 PM
John Juarez
The Medford Real Estate Team - Fremont, CA

We are not in a market where I expect my client to make up the shortage when a house fails to appraise. Prices are falling and comp sales from 90 days or more ago are worthless except to show a price that is no longer valid. Sellers need to adjust to the new market and maybe they need to adjust the contract price downwards to meet the appraisal value.

If the house does not appraise the first time around, it is risky to get a second appraisal and prove the first appraisal was right.

Nov 16, 2022 06:56 PM
Caroline Gerardo
Licensed in 20 states - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Before the appraiser makes a call or appointment I speak with listing agent.

Are the smoke and carbon monoxide detectors in place or do I need to assist?

Do you have four comps in past three months with fifty square feet more than subject and closed sale with a loan at price three percent more than this contract? Please share...

Can you meet the appraiser in person and remove lock box key please?

Then I send oatmeal cookies.

I am not allowed to speak to appraiser and the listing agent has all the magic of negotiation and salesmanship at that point when the appraiser calls for an appointment. If they cannot meet the appraiser I get buyer agent to do so.

The key is to hand the research to the appraiser BEFORE they form an opinion. 

Some lenders DO NOT allow second appraisal, all you have is the rebuttal. Second one can be worse or averaged which is not what you want. The key is to demonstrate errors, prejudicial opinion, and it's not that difficult to over turn if you are meticulous and very tactful. 

Think of it this way: you are saying the appraiser doesn't know what they are doing so it has to be in the lender's format, sent to the Appraisal Management company, and have facts.

If you need an expert appraisal reconsideration of value contact me I will help you for free. I need the appraisal, your comments about the photos, and your listing brain. Never lost one yet even when market was going to the moon. A  willing buyer and seller set the valuation.  

Nov 16, 2022 04:59 PM
Peter Mohylsky
PMI. Destin - Miramar Beach, FL

I have never lost an appraisal.  Are you working for the buyer or the seller.  It is time to sit down with the other agent and figure out a game plan going forward.  What does the lender say? 

Nov 16, 2022 02:58 PM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

In 20 years I have only had two issues with an appraisal coming in short. 

One was due to an out-of-area appraiser. We ALL knew it would appraise. The buyer asked for an extension of time. It was granted. Second appraisal - no issues. 

The other time appraisal came in $10K short. The seller would not budge. The buyer made an offer on a neighboring home (in much better condition). It was accepted and no issue with the appraisal. 

Nov 17, 2022 08:58 AM
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

If you have the comps to support the purchase price, challenge the appraisal with the appraisal management company. 

Nov 17, 2022 07:33 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

So far, the appraisals are coming in at value, but the appraisers are saying they are only using comps from 90-120 days, since values are stabilizing.

Nov 17, 2022 05:42 AM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Philip A. Raices it can complicates when the appraisal comes short. 2nd appraisal will help.

Nov 16, 2022 03:16 PM
Buzz Mackintosh
Mackintosh REALTORS - Frederick, MD
“Experience, reliable, leadership”

If there is an appraisal clause in the contact I go over the scenarios at that point with the Seller. I rarely have had an appraisal issue as I meet the appraiser to provide the comps I used to price the property and tell them if it was a multiple offer situation. If you have the comps to support the price I would discuss with the appraiser or go through an appeal process if available.  

Nov 17, 2022 09:06 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Appraisals are an interesting subject and not just to everyone but also to the appraiser themselves. I have found that them being neutral in their work, they tend to carry out their mandate or instructions from who hired them. Any data collected, in the end, is subjective to the users of that data. Facts will always remain but how we employ them remains. Appraisers remind me of the Tax Assessor. They do comps & then make a tax assessment allowing for dispute, appeals but using the same data you have

Nov 17, 2022 07:14 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

It pays to get it right before the listing is advertised and before the offer is made with solid comps that will lead to a workable appraisal.

Nov 17, 2022 04:06 AM
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

I've not been having any issues with appraisals.  But I do address this subject with every buyer and seller I work with, so they are on the same page as me. If I had an issue I would pull comps and present my professional opinion to the appraiser.

Nov 17, 2022 11:07 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Hasn't happened in years, but generally speaking, depends.... fight the appraisal, negotiate, I've also written lots of contracts in the past two years where appraisal contingency was waived.  It's not something I anticipate happening in this market, we're still steady, prices holding firm.

Nov 17, 2022 10:36 AM
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

I believe agents are better equipped to provide and use more accurate comps in their CMA's. It's tough to fight the appraiser battle when it doesn't go your way, although you feel it should. It also might depend on the timing of the appraisal. For example, in my market numbers from four months ago do not reflect current conditions, closing prices are generally lower. If the appraisal is dated, or comps are dated, it might be a reason for a new one, if the bank permits it. 

Nov 17, 2022 09:04 AM
Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

knock on wood, never had it happen.

Nov 17, 2022 08:32 AM
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

Although I have not had an appraisal contingency for some time (everyone recently pays cash), I always meet with the appraiser and show my comps and anything else positive about the property that might add value.  Only once had a low appraisal when there just weren't any comps and we contested it.  Buyer and seller met in the middle to get the deal done. 

Nov 17, 2022 02:02 PM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

We have paragraphs giving notice of this happening in both the listing & selling contracts. Usually there are additional questions but they are forwarned.

Nov 18, 2022 06:58 AM
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

I've been trying to only go back about 3-4 months. There was a big shift in the market after interest rates started increasing in June/July. Contract on properties written after those dates are more reliable. It hasn't been a huge difference in price for most people but a small percentage never the less.

What I do see is some sellers still want to price at high in the sky prices that would have never comped but they may have gotten 6 months ago. So for buyers, we're looking at those numbers to see if they'll appraise now. Sellers don't want to budge so it is taking some work to get buyers under contract.

As for sellers, I'm always going to be honest with them and show them the data.

Having said that, I haven't had any appraisal issues lately because we're looking at the data and making appropriate offers. Many buyers are so tight on their funds and their payment right now because of interest rates so it is very important they know if the house will appraise.

Nov 18, 2022 05:45 AM
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

I always promote the best interest of my client.  I first put the burden on the other party.  If that doesn't work I'll look for a compromise.

Nov 18, 2022 09:08 PM
Philip A. Raices
Turn Key Real Estate - Great Neck, NY
1 of the Most Knowledgeable Brokers on the Net!

I want to thank everyone for their responses to my questions.  I see answers will vary depending on the location you are doing business.  I agree with Thomas that the maximum of 90 days for a comp based on your sale area makes the most sense.  But Long Island hasn't depreciated that much at all due to only 3.2 months of inventory and homes are still selling well if priced properly.  However, I see out west prices dropping as inventory increases, so comps can be different.

Nov 18, 2022 12:31 PM