Differences between Private Appraisals Vs Bank Appraisals
Is there a difference? An answer from an appraiser is “NO” A value of a property should be the same regardless who its appraised for. Then Why there are differences.
There are certain situations the value will differ but the report itself should explain he reason. For an example, let say there is a 20 Acre property with a home on it. Bank A lending policy might be to lend on only for 5 Acre and Bank B might be willing to lend up to 10 Acre. In this case, The Lender will instruct the appraiser and the value will differ based on this condition.
Some lenders may accept a values upto past 6 months and some lenders may insist on only one month old comparable as minimum. This would introduce variations as the price trend may change in this duration. There are situation Lenders ask for listing price rather the actual value. This happens when a lender take position and try to liquidate for unpaid mortgages. The bank also would expect a price that would sell in short period of time rather waiting for months. In this circumstances, Appraiser will try to go with lower range as possible.
As always, Appraisal is an opinion of value and as it states, An opinion may differ based on the facts that presented to an appraiser. But it should be with in an acceptable range where it make sense. If you have further questions, Call us at 1 (855) 298-4369 or contact us for free quote