For many unsuspecting home buyers in Scottsdale, the appraisal process is the most common difficulty that arises with financing a property. Appraisers are required to provide greater analysis and justification for the value they arrive at. Also, banks will often require second or third appraisals at the last minute. The reason for these precautions is that many consider appraisers to be a large contributing factor to the market collapse. Multiple appraisals on a property should prevent some of the appraisal shenanigans that were going on during the bubble.
Seven years ago, real estate prices began to sharply increase until they reached a level that was unsustainable, and the housing market nosedived. Many believe appraisers are to blame for the price increases that began in 2005. Indeed, the whole appraisal process was much less comprehensive than it is today. In fact, appraisers could do what was called “drive-by appraisals,” passing by the property and assigning a relatively arbitrary value just from the look of it.
Today, appraisers are much more heavily regulated and accountable for their conclusions. This makes financing a home a long and arduous process for some. We remind our clients to expect the unexpected when trying to obtain a mortgage. Appraisals are done much differently now than they were several years ago, and unexpected delays could leave you with no home at all.
When buying a home in Scottsdale, it helps to have a dedicated professional Scottsdale Realtor by your side. If you wish to view Scottsdale Arizona real estate, call me at (602) 791-0536 or email Carmen@TopScottsdaleHomes.com.
Carmen Brodeur JD
Trillium Properties, LLC
9825 E Bell Road, Suite 120, Scottsdale AZ 85260