Appraisals are coming in below market value?! MYTHS Debunked
HousingWire is always good for a laugh, and this is no exception. According to USPAP and every state board of appraisers, under penalty of various fines, and eventually jail time, the only person in a real estate transaction that can report "market value" is a state board certified/licensed appraiser. No one else has the experience, credibility or state-backed review ensurance to make those claims.
Here HousingWire's claim is something akin to the following fake article:
"Millions of American's are faking Covid symptoms," says my crazy uncle Wayne. Wayne has a complex theory on why and how these frauds are collaborating to harm America, but you should definitely trust him more than that state board-certified doctor over there waving her hands.
The individuals making these offers and advising others to make these offers have no state-certified real estate valuation experience (as covered numerous times in this blog), no manner by which to have the work officially reviewed, no state sanctions if found to not be competent. They have a desire for a house, money and an opinion.
In the example given, the appraiser's determination of market value was $50,000 less than the offer the buyer was willing to make. The buyer has a decision at this point, put up, or shut up. Either you believe the house is worth that higher amount, and risk your own money, OR you only want to play with the bank's money... and that is a very different question than most are willing to consider.