Appraisals are done for the wrong type of people, sometimes. Some times people need an appraiser when they’re looking to refinance or buy a home. A friend of mine shared a story while we were watching the Super Bowl.
My friend was looking to sell their home using FSBO in Mt Pleasant, SC. Going this route, my friend — let’s call him Jack — wouldn’t have to pay high commission sales to real estate agents with this sale. He marketed his property everywhere: the MLS, Craigslist, etc. He wasn’t having much luck at showing his home, though. Until he received an offer.
The offer came from his neighbor — the pesky neighbor he had been at odds with for years! Though, Jack didn’t want to sell it to this neighbor, he knew that he might be open to a deal anyway, so he entertained an offer.
The offer from his neighbor came in low — really low, in fact. Of course, my friend declined his offer. The neighbor came back with another offer — only $10 more this time — was the neighbor being ridiculous?
This continued, and drove my friend Jack up-the-wall (crazy) with the absurd offer. Finally, another buyer came in to the rescue and offered something right below the asking price.
This just goes to show you, though — even though appraisals are expert opinions into the value of the home, it doesn’t mean people won’t attempt to go the end-route around and offer a way lower price. Jack wasn’t looking to sell his home at a discount — he wanted a fair deal. That’s partially why appraisers exist in the first place.