By David Brewer
Thirty years ago, I learned an important lesson that, as a REALTOR®, I still appreciate. When an experienced and professional Real Estate Appraiser submits a “Credible Opinion of Value”, REALTOR®s might consider paying close attention.
I was working with a Builder who was preparing to build several new floor plans in a new development. Back then, we REALTORS® could request an Appraiser when making the mortgage application and I requested one who was designated and highly respected. In due course the appraisals were completed and the value was somewhat lower than we had anticipated. My Builder and I asked the Appraiser to review his work because I believed that he had probably made a mistake. After all, I was an experienced REALTOR® and believed that I probably knew the market better than my Appraiser. Have I already mentioned that the Appraiser was “designated and highly respected”?
My Builder built the new models and I went about the job of marketing the new homes. After what can only be described as disappointing marketing effort, we finally sold the homes and I am sure that you will never guess what the sales price was. That’s right, we sold those houses for almost exactly the price that the Appraiser had shown on his appraisals and not for my higher listed price. Obviously, I should have paid much more attention to the original appraisals that were prepared by the designated, highly respected AND experienced Appraiser.
