When
it comes to a car, there’s virtually nowhere for its value in the
market to go but down. By the sixth year of ownership, a brand new
$30,000 sedan would have dropped in value by nearly a third. Houses,
on the other hand, are different; depending on factors like the state
of the real estate market, its value can either swing up or down.
Residents
find it difficult to price their home as high as possible due to the
sheer investment in home improvements for it to look appealing to an
appraiser. Nevertheless, even with a thorough appraisal, it won’t
guarantee a good price, especially before closing. This results in an
“under-appraisal,” a real estate phenomenon common in both the
U.S. and Canada.
With
tools such as the Multiple Listing Service® (MLS), under-appraisals
should’ve been relegated to history. The MLS® is as accurate as a
buyer or seller will get as far as local real estate prices are
concerned, being a hodgepodge of homes for sale. While it’s not
good for an appraiser to give a low value, so is the homeowner asking
for a higher, unreasonable one.
Every
group in the real estate market has tons of data to rely on to reduce
the frequency of an under-appraisal. The appraiser has the right to
give a low price for your house, given that he can justify reasons
for this outcome. However, you also have the right to ask for a
review of the appraisal, given the same conditions.