Skipping The Appraisal Can Cost Thousands


This house sold 03/15/2019 for $400,000 in an all cash sale to a Realtor/Investor and no appraisal was conducted. The realtor relied upon an AVM (automated valuation model) to determine if the asking price was fair rather than paying the cost for a professional appraiser to provide a supported opinion of value.

no home appraisal costs thousands
 
  • This home then listed for sale on 03/24/2019 for $400,000 by said realtor.
  • It has the price reduced by $15,500 on 03/29/2019.
  • Still no offers and the price was reduced by an additional $8,500 on 04/08/2019 and remained on the market.
  • It went under contract 04/15/2019 for $365,000.

In this case the realtor saved $400 on an appraisal but lost $35,000 by relying on an AVM. (By the way when it was appraised for the recent sale it appraised at $368,000.)

 

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