Summary

In this conversation, Ben and Clint delve into the intricacies of appraisals in real estate, discussing their significance in the lending process, the challenges that arise, and the emotional dynamics involved in negotiations. They explore how appraisals affect buyers and sellers, particularly in foreclosure situations, and the specific processes in place for challenging appraisals, especially for VA loans. The discussion emphasizes the importance of understanding appraisals as professional opinions of value and the role of agents in navigating the emotional landscape of real estate transactions.

Takeaways

· The appraisal is a function of the lending process.

· Sellers often worry about leaving money on the table, but appraisals are not a direct reflection of market value.

· Appraisals can come in below, at, or above the sales price, affecting negotiations.

· The lender owns the appraisal, but the buyer pays for it and has the right to a copy.

· In FHA loans, appraisals stay with the property for six months, impacting future sales.

· Appraisals serve as professional opinions of value, not definitive statements.

· Foreclosures often sell for less due to their condition, impacting appraisals.

· Agents play a crucial role in calming emotions during appraisal negotiations.

· The VA appraisal process includes specific steps for challenging appraisals.

· Understanding the appraisal process is essential for both buyers and sellers.

Sound Bites

"You're not leaving any money on the table."

"The lender requires it, the buyer pays for it."

"We try to fix more of them than we don't."

Click here to view the episode transcript.

Chapters

00:00 Teaser

00:13 Intro

00:27 Understanding Appraisals: The Basics

03:07 The Role of Lenders in Appraisals

05:39 Appraisal Ownership and Rights

08:28 Challenges and Discrepancies in Appraisals

11:15 Appraisals: Risk Mitigation for Foreclosure

14:16 Navigating VA and FHA Appraisals

16:40 Emotional Dynamics in Real Estate Transactions

20:14 Disclaimer

Hosts

Ben Harang, REALTOR®

La. License #: 36589

Keller Williams Realty Bayou Partners

Mobile: 985.859.2500

Office: 985.262.4400

ben@benharang.com

benharang.com

Clint C. Galliano, REALTOR®

La. License #: 995704723

Keller Williams Realty Bayou Partners

Mobile: 985.647.4479

Office: 985.262.4400

clint.galliano@kw.com

clintcgallianorealtor.com

Produced by Clint Galliano

Music by Wiggins Studios

Video Version
Click here to watch a video of this episode.