Home Appraisal, Science or Art?

[ithaca]

To some people, valuation of a home is very subjective depending on the appraiser. How do you think we can make the process more transparent?

[admin]

An appraisal is subjective. It is simply a professional opinion and should be treated as such. The only thing one can do to make the process more uniform is to require that adjustments be made in a very specific manner.

[firefly]

Unfortunately the appraisal is usually used as a basis for the starting price, so I think maximum objectivity is of paramount importance.

[danang]

I totally agree with you; sometimes I think the appraisers behave like Gods as his report has a direct bearing on the price the house can fetch. How I wish there is a more streamlined and transparent process.

[cgjerdetu]

I'm an agent but although I'm not currently appraising I am a certified residential appraiser. Yes, some things are subjective in appraisal but many are not - especially with the crack-down in lending practices, I think you will find less variation between appraisers.

Appraisers actually do not come to an opinion but an estimate of value. Estimate sounds more scientific - most appraisers do not take the time to do true analysis of the data - most clients are not willing to pay for that type of report as well.

[admin]

Originally Posted by cgjerdetu

I'm an agent but although I'm not currently appraising I am a certified residential appraiser. Yes, some things are subjective in appraisal but many are not - especially with the crack-down in lending practices, I think you will find less variation between appraisers.

Appraisers actually do not come to an opinion but an estimate of value. Estimate sounds more scientific - most appraisers do not take the time to do true analysis of the data - most clients are not willing to pay for that type of report as well.

I know many would like to believe that an apprasial is some how more concrete in nature, especially appraisers. But, in all reality it is an opinion of an estimate of value. I will agree that it is an educated opinion of value but still it is an opinion. In large part because no two properties are identical and no two consumers are identical in their tastes and needs. This prevents us from having anything more than a educated opinion of value.