In May, we told you about our personal experience getting our home appraised. Well, the appraiser arrived as scheduled and completed his job in accordance with all the standards and ethics required by an appraiser (as far as we can tell). We lauded his commitment to the job and time spent asking questions before even visiting the home.
In almost not time, priorities changed and we sought a new appraisal with a new lender. The new appraisal was performed by a different appraiser but our experience was similar to the first. We had a brief conversation with the appraiser explaining the conditions of the home and upgrades made since it was purchased. Although this appraiser was late for the appointment it appeared he too worked in accordance with all the standards and ethics required by an appraiser.
The second appraisal reported the home to be worth $50,000 less than the appraisal in May. That would mean an 18 percent decrease in value in under one month’s time. Of course, both lenders stand by their appraisal.
We understand that markets are tough. We’re looking at a double dip recession and the global economy is, at best, struggling. However, 18 percent in one month’s time seems like quite a drop even for the hardest hit markets (the home is not located in the hardest hit markets).
Maybe the neighborhood is spiraling so quickly that within 6 months the value of the home will be down 100 percent.
Maybe two reasonable people looking at the same data can come up with two very different conclusions.
At the end of the day it begs the question: What is my home worth?