Appraisers and real estate agents look at property values very differently.
An appraiser looks at a subject property and they find other properties in which they find similar. They take the similar properties and add or subtract for the items that the subject property does or does not have. For example, if the subject property has 4 bedrooms and the similar or comparable property has 3 bedrooms, they will deduct a certain amount of money from the comparable property.
Here's where it gets tricky. What do they deduct? It is subjective, they can deduct $2500 or $500 or $0. How about a three car versus a two car garage. We know as agents that a three car garage could very well bring in $10-$20,000 more on a property value, where an appraiser may give the extra garage a value of only $4000. How about a pool? Some appraisers don't give any value to a pool. Some appraisers may give $20,000 value for a pool. There are no set amounts for any of these items.
The appraisers get frustrated because their hands are tied on what they can or can't do especially with the government now getting involved. And the real estate agents are looking at it as what the market will pay for property.
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