How to Escape a Bad Deal: Why an Unbiased Appraisal Protects You
By Stan Choate, Office Manager
When the Appraisal Isn’t What Everyone Expected
At Spurgeon Appraisals, we are occasionally faced with tense situations over the value of real estate. After being hired to appraise some particular property, we begin to see that the property is not worth what everyone else expects. We check and re-check our data, but our conclusion only conforms less and less to expectation. After we deliver our report, we wait for one of the interested parties to contact us—as we know they will—to contest our conclusion, sometimes with great emotion.
In such tense situations, we always ask our customers, and other interested parties, to remember and consider a few basic appraisal concepts. One of those concepts is the unbiased nature of appraisal work—and that is the topic of this month’s newsletter.
Who Benefits From an Unbiased Opinion of Value
In nearly all situations, people appreciate that unbiased opinions are less likely to be clouded by such obstacles as sentimentality or the hope of personal gain. The valuation of real estate also benefits from such unbiased opinions. Sellers are more likely to get what their property is worth; buyers are less likely to waste money; lenders avoid making bad loans; family members and business partners are more likely to divide assets evenly—if they have an unbiased opinion of that real estate’s value. Without a trustworthy opinion of value, these same people could only base their decisions on hearsay, guesswork, or maybe even lies.
Unbiased Appraisals
Who Benefits from an Unbiased Value
Everyone at the table decides better with a trustworthy opinion of value.
Sellers
More likely to get what their property is worth.
Buyers
Less likely to waste money.
Lenders
Avoid making bad loans.
Families & Partners
More likely to divide assets evenly.
Farm · Commercial · Home appraisals | Missouri · Illinois · Iowa
Why the Appraiser Is the Unbiased Party
Of all existing professions related to real estate, only one is designed to provide that unbiased opinion of value: real-estate appraisal. Not only do appraisers have the training and the data, they also have something which no one else brings to the table: disinterest. The appraiser gets paid whether he agrees with one party or another (or with neither of them), and he has no personal stake in the property being appraised.
Unbiased Appraisals
What Only the Appraiser Brings
Of all real-estate professions, only appraisal is designed to give an unbiased value.
Without an Unbiased Opinion
Decisions rest on:
- Hearsay
- Guesswork
- Maybe even lies
The Appraiser Brings
To the table:
- Training
- Data
- Disinterest
What disinterest means
The appraiser gets paid whether he agrees with one party, another, or neither, and has no personal stake in the property being appraised.
Farm · Commercial · Home appraisals | Missouri · Illinois · Iowa
“Killing the Deal” or Killing a Bad Deal?
This sort of reasoning is unobjectionable when viewed from afar. But once someone joins the game as a buyer, seller, lender, or other interested party, the rules of the game make less sense. Somehow or other, interested parties develop an opinion of value for the subject property. And because they trust themselves, they expect the appraiser’s conclusion to agree with their own. If the appraiser happens to disagree, he is viewed, not as correcting a misunderstanding, but as “killing the deal”.
No one likes having plans foiled, and no one likes the suggestion of being incorrect. For that reason, people often have a hard time seeing beyond the immediate trouble created by the appraiser’s unexpected conclusion. At such times, people can benefit from remembering what they already know about the benefits of unbiased opinions and the unique advantage of the appraiser in being unbiased. The appraiser might have killed a deal, but what’s so bad about killing a bad deal?
An Unbiased, Objective Appraisal
At Spurgeon Appraisals, we believe we make every effort to practice the unbiased, objective ethic which is supposed to characterize appraisal work. Call us today for a fair market value for your home, farm, or building.
Spurgeon Appraisals regularly appraises a variety of property types. We have experience appraising farms, residences, and commercial properties. We pride ourselves on providing excellent customer service and quality appraisals. Contact our team to see how we can meet your appraisal needs and exceed your service expectations.
