Why do homeowners and appraisers sometimes don't agree. There can be all sorts of reasons the two do not agree. One of the most powerful reasons can be as simple as supply and demand. In today's market where supply is low and the demand is high, home values can be pushed up. Currently housing experts are projecting that the home values could appreciate another 5%, simply because of low supply. One obstacle in a market like this is the appraisal.
When home prices are rising due to lack of supply, it can be very hard for an appraiser to find a comparable home with the higher value. Appraisers look for the closest homes with comparable features, size, rooms. Usually these homes are located within the same subdivision or within a limited circumference.
Just like a person is approved for a loan, the collateral is also examined and approved by the lender. Many lenders will also have their own team of appraisers to examine the appraisal. Not all appraisers are the same. Some appraisers have special certifications, while others may not be approved with lenders at all. A full service real estate agent can help you locate a certified appraiser as well as a loan officer. This is another reason you want to have a real estate agent working with you.