Research Comparable homes
Research Comparable homesEveryone involved in buying and selling a home has an agenda. Let’s say a home is for sale in Bellevue for $700,000. The seller is hoping to get the highest possible price. The buyer is hoping to get the lowest possible price. The Real Estate agents are depending on the commission from the sale. The Bank wants the most conservative valuation of the home to protect their investment. The Appraiser is expected to be the one neutral party, with no personal interest in the property, who can provide the most accurate, unbiased evaluation.
To become a Certified Residential Real Estate Appraiser in the State of Washington requires a bachelor’s degree, 2,500 hours of fieldwork over a minimum of two years, an additional 120 hours of targeted courses, and approved training directly under a Certified Supervisory Appraiser.
You would think, after all, that, Appraisers would be very good at their job. And yet, somewhere in the neighborhood of 40% to 50% of Appraisers in the field today do mediocre to poor quality work. Why? The simple answer is that you cannot train people to be creative, and for the most part, Real Estate valuation is a creative process.