Appraisals can be a sellers worst nightmare

    When a Real Estate Agent approaches a seller with an offer for their home, that they have listed for sale, they should have a pretty solid idea of Fair Market Value. However, we have been surprised in the past as have other agents.

    With regard to buyers, we have been watching as our clients have had us construct an offer, on a home for sale, at Fair Market Value. The appraiser, working for the bank that is loaning our buyers money, came back establishing value at lower than was originally offered.  Paris and I are elated as are our clients.

    However, it does not always happen that way.  Sellers, be them bank or private, sometimes don’t adjust their sale price to meet the value as established by the appraiser. If the offer that was written was conventional – that appraisal will not be seen by anyone.  However, if the offer that was written was FHA or VA, the property is now tagged with that specific appraisal for 6 months.

    The fact that the seller refused to adjust their sales price to the value established by the appraiser will be seen by every subsequent FHA or VA offer.  Each FHA or VA appraisal that is completed on a property establishes a FHA/VA Case Number corresponding to the specific street address.  Basically, the seller shot themselves in the foot with being able to accept any future VA or FHA offers, unless willing to adjust their list price.

    Conventional Offers are a different story – they are not tracked.  It could happen, as our experience has shown, that a Conventional Offer comes in and steals the show.  FHA and VA have more strict requirements as they relate to “home condition”. Fixers, except for specific types allowed by the FHA 203k rehab program, are not accepted by FHA or VA financing.  That previous statement also will depend on how much the “seller” is willing to bring the home around to conform with those home condition standards that have been established by an FHA or VA appraiser.

    Before a Good Realtor will take their client out to a home, condo or town-home, they will have run the area, home or complex to ensure that those homes they are showing to their clients, are approved for the FHA and or VA loans.

    It is very important to meet with the agent you are choosing before you look at house 1. Today, right now, you could pick up the phone and find a Realtor that is willing to meet with you at a particular property that you found on line.  However, you are not buying a pair of shoes. Get good information and take the time to see if the Realtor you are hiring is a good fit and if they have your best interests at heart.

    Paris and Connor MacIvor

    Connor and Paris MacIvor are in the Top 1% of Realtors Nationwide, starting their real estate business in 1998 with RE/MAX Gateway - Santa Clarita Valley and Valencia CA. Their becoming licensed real estate consultants and representatives came from the horrible experience they had when they bought their first home. There were many things that the agent they had hired did not explain and disclose, which per law he should have. Getting that agent on the phone after they closed escrow and after he had gotten paid was impossible. Paris and Connor called the broker, the board of realtors, the office manager and all they received was the promise of a phone call back. The remedy did come, but not as fast and in the way they wanted. That act - that bad agent was the reason why Paris and Connor became Realtors. That was all they needed to vow to never let the same fate befall anyone else, that befell them. Today Connor and Paris are focused on client service. Protection and top-shelf service with regard to their real estate clientele. They primarily work within the Santa Clarita Valley and Valencia CA. However, for a referral, where 80+ of their business is referrals they have License and Will Travel to other parts of Ventura County, Los Angeles County, and Orange County to handle real estate transactions for those who trust their real estate operation. Writing on their Real Estate Blog is a passion. is where you will find over 10,000 real estate articles. Go to to listen to their latest real estate radio broadcast.

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