Does the Appraiser Enter the Property? (appraisal, sales, condo, agreement)

[acegolfer]

I had 3 appraisals done recently, one for my old home, two for purchases. I know the appraiser didn't enter my old home. I'm not sure whether the appraiser entered the other two properties.

I have another question. Does the appraiser see the purchase price? I have a feeling he/she does.

[Rose Red]

Yes, last I knew - If it's a purchase the appraiser has to note the sales price on the appraisal. Sometimes they will ask for a copy of the purchase contract.

Yes - most appraisers do enter the property unless whoever requested the appraisal asks for a drive by only.

[Brandon Hoffman]

Yes, normally they get a copy of the contract prior to appraisal, at least the ones that do the appraisals on my properties. They normally call me for a copy of it prior to appraisal.

[Rakin]

Usually they go in and measure the inside of the home but if there is a large down payment the may just do a "Drive By Appraisal"

[Annemieke Roell]

It depends on what the client/lender orders. Although the appraiser may advise to upgrade to an interior inspection in some cases, a lender may be satisfied with a "drive by" only.

That term "drive by", incidentally, is a bad name for this type of appraisal as it implies the appraiser drives by the house and determines its market value.

The only difference between an exterior "drive by" appraisal and a full interior/exterior is that with the former we don't measure the house or do an interior inspection. Everything else, such as market research and data analyses, is the same for both types of reports.

Appraisers are required by FNMA guidelines to receive and analyse the purchase and sales agreement/contract and report on it in the appraisal report. Of course, a professional appraiser would not be influenced by knowing the sales price in advance and will report merely his/her opinion f market value.

Rakin, we measure the outside of the property, unless it is a condo or townhouse.

[Rakin]

How do you do the 2nd floor of a 2 story home ?

[acegolfer]

Thanks.

I had two similar properties appraised for purchase, which were ordered by the same lender. These two are in the same neighborhood. It was obvious that the appraiser was influenced by the purchase price.

The purchase price for the first one was higher because we loved the location so much. However, I doubt people would pay premiums for SE exposure. But other than that the second house was much better, being newer and larger. Surprisingly, the appraisal value was lower for the second one.

I'm pretty positive that I can sell the second property at a higher price than the first one. It was just our particular preference for specific location that we offered more on the first one.

For those who wonder why 2 properties, the seller of the first home defaulted and I had to make an offer on another home. We have been staying at a hotel for the last 3 weeks and are closing in 3 days.

[tamitrail]

I've only had an appraiser enter the home I was purchasing when it was a new construction home and not totally completed.

[Annemieke Roell]

Originally Posted by acegolfer

Thanks.

I had two similar properties appraised for purchase, which were ordered by the same lender. These two are in the same neighborhood. It was obvious that the appraiser was influenced by the purchase price.

The purchase price for the first one was higher because we loved the location so much. However, I doubt people would pay premiums for SE exposure. But other than that the second house was much better, being newer and larger. Surprisingly, the appraisal value was lower for the second one.

I'm pretty positive that I can sell the second property at a higher price than the first one. It was just our particular preference for specific location that we offered more on the first one.

For those who wonder why 2 properties, the seller of the first home defaulted and I had to make an offer on another home. We have been staying at a hotel for the last 3 weeks and are closing in 3 days.

I don't know where you are located but if you think the appraisals were not done properly and you would like a qualified appraiser take a look at them, please let me know. This will be done free of charge.

[Annemieke Roell]

Originally Posted by Rakin

How do you do the 2nd floor of a 2 story home ?

We do indeed measure a second floor from the inside per ANSI Standards and allow for the experior walls. I should have added that