It seems an impossible concept, properties that cannot be appraised. How can that be? Certainly every property has some value, so how can it be that a property cannot be appraised by a licensed trained appraiser?

In fact it is not an issue of value. Certainly many properties that cannot be appraised are very valuable indeed and would sell for a very substantial price, but cannot be appraised. Of course if a property cannot be appraised, the buyer cannot get financing as financing is controlled by appraised value, no appraisal…no value…no financing…no sale or purchase possible.

So I ask again, how could it be that a trained certified appraiser cannot appraise a property that has clear value?

It’s because of the lack of comparatives.

Appraisals are driven by the sale of comparative properties in the same market. If there are no comparative sales then an appraisal cannot be done, no comps no appraisal.  No appraisal no financing, no financing no sale.

So in reality an appraisal has almost nothing to do with valuing the target property, it has only to do with what other similar properties in the same area have sold for…thats it, thats all there is, and if no similar properties have sld in the immediate area there will be no appraisal and the property has for all practical purposes for financing reasons, no value, as it cannot be appraised as the system requires.

This makes absolutely no sense at all. But this is the way the system works.

I have had properties in an area were no sales activity has occurred and have not been able to have a property appraised and thus it could not be financed or sold, even though a waiting buyer wanted to purchase.

I have had unusual properties in the middle of robust markets but because of the lack of comps for particular unique properties…no appraisal available.

It is an unusual problem…but it occurs more often then you may think…If you are confronted by his issue, call, we always have a solution.