The Art of the Appraisal Deal

Appraisals are art, not science. While appraisers are well trained professionals, their opinions are really just that, “opinions.” As I’ve said before, the buyer decides the value, no one else. Many a person has been duped by unscrupulous sellers using doctored appraisals to support inflated values. Beware of this and make sure that you do some independent research.

However, since someone has to put a finger on value for lenders, we have to look to the appraiser’s opinion for an idea of what the value is. There are three main types of appraisal methods: cost approach, sales approach, and income approach (my favorite). (more…)