Question:
“Do appraisals tend to come in high or low?”
Answer:
Great question.
Most people think that appraisals tend to be conservative and come in on the low side. And in this case, most people happen to be wrong.
From 29 years experience, I can tell you that appraisals tend to come in on the high side.
My unscientific estimate is:
- 40% are high
- 40% are accurate within 3%
- 20% are low
The bottom line, and I know this is counterintuitive, is that you cannot necessarily depend on a professional appraiser to accurately tell you what your home is worth.
Before any appraisers reading this get mad at me, note that I said 40% are fairly accurate.
