Everywhere here in the Tampa Bay area we are seeing that the market prices are increasing. So then how does a home purchased in June of 2015 for $270,000 only appraise for $257,000 14 months later?
Hopefully you are saying like we are who knows? Florida Association of Realtors, Greater Tampa Association of Realtors are all saying the same thing. Market is improving, prices are increasing, and inventory is low.
Market Update What the heck is going on?
We were totally shocked when the buyer’s agent called us and said that the appraisal came in $23,000 under contract price of $280,000. He and I were both thinking when the offer was submitted no issues with this one. Inspection was completed no issues, appraisal comes in $23,000 under contract price.
Naturally our sellers were like no way are we selling the house for this. So we started the appeal process. The buyer’s agent was great he and I were both combing through the past sales and found comparable homes to substantiate the sales price.
We noticed that the appraiser used a comparable cash sale that we know was also a divorce situation that sold at $78.00sf, where there was a sale 2 days later of a comparable home that sold at $93.00sf and this home did not have a pool, which ours did.
I need to mention that this is a newer community and many of the homes in the community do not have a pool, and the appraiser made adjustments on other comparable homes to make up for the pool issue. Then he used a Bank Owned Home as the comparable Active home on the market, when there were 3 other comparable homes active. One listed at $103sf, other at $107sf and one listed at $167sf. (Not sure which market these people are in) for $167sf I would expect at a minimum Riverfront, boat dock, or some sort of ski-able water, not a retention pond.
But you can see that there were enough other homes that this appraiser could have used. It is such a shame that an appraiser kills a deal and then when we definitely showed that there were other homes that were active, pending and sold in the same market area, and the response is “The Appraiser Stands Firm on his Analysis and Valuation of the subject property.”
So we had to get the home back active on the market on Wednesday night and we have received another offer on Thursday and the home is back under contract to be sold. Hopefully we will have no issues with this appraiser.
Interested in seeing what your home is worth? 
Nick & Cindy Davis are avail to come sit down with you and explain the market value of your home and show you our strategy on how to market and sell your home for the highest price, in the shortest amount of time with the most favorable terms for you. You can always reach us at 813-300-7116 or simply click here and we will be in touch.