What's in a Value?

To some in the Real Estate Business the Appraisers estimate of value is just a number.
But to the Borrower that number can mean a lot. It can mean the difference between
being able to buy a home or not.  It can mean that they may not be able to borrow as
much as they could or that they are borrowing to much on a refinance.

Recently an acquaintance of P.A.R.R.'s Founder came to him and said that she has been
trying to sell her home now for well over a year.  Her area is not a declining market but
she can't seem to get any buyers even though she has the home listed for less that the
appraisal value the last time she refinanced her home.  The only offers she has gotten
are actually less than her loan amount. 

His advice to her was to wait it out and that perhaps in a more active Spring and Summer
market she will get more offers that are closer to the asking price.  In reality, what will
probably have to happen is that eventually, she may have to come to the closing table
with cash just to sell the property or have to let it go back to the bank.  What caused
this problem?  P.A.R.R. didn't review the appraisal so we can't say for sure that the
appraisers estimate of value was inaccurate at the time the appraisal was performed but
it would sure seem as if the appraisal was over valued.  It is also not known when the
appraisal was performed which could make a big difference in what it is worth today.

Regardless, it pointed out to P.A.R.R.'s Founder, the importance of the accuracy of the
appraisal and the appraisers estimate of value. 

So, What's in a Value? For borrowers it can mean the health of their financial future.
For Banks it can mean the difference of getting their money back or loosing it in a
foreclosure.  If the appraisal is contested in court, it could mean the appraisers livelihood.
For the Loan Officers or Realtors who make the deal, it means absolutely nothing other
than how much commission they can receive once the sale or refinance closes.

Be an Informed Consumer.         Make sure your Appraisal is Up To P.A.R.R.