A Minneapolis Under-Valued Home Appraisal is Preventable

A skilled Minneapolis appraiser provides a service that should help make buying and selling a house smooth and stress free. ‘Should’ is the operative word.

Going back to ancient times, homes have always been ‘real’ when it comes to establishing the amount of money that they are worth. The home’s role as the center of family and community groupings guarantees that it will change hands carefully. When something is so important, its ownership does not come about haphazardly—doubly so because of its typically hefty price tag, arrived at after deliberation and scrutiny from buyer and seller alike.

Every home that is sold in Minneapolis today should be a shining example of the efficiency (and fairness) of our free market. As a mechanism for determining the value of a good, the system is without equal, since buyer and seller have to agree on a price. 

That’s where having a skilled Minneapolis appraiser comes in. An appraiser (not to be confused with a home inspector, who reports on the soundness of a property) performs an important function in the transition from a Minneapolis house for sale into a house that’s sold. The appraiser’s report provides an outsider’s unbiased opinion of a home’s current market value. Having a professional who knows how to analyze the property as it stacks up against comparables Minneapolis homes in the area—then determining its value in the lively Minneapolis market of August 2015—is intended to provide peace of mind to all parties in the transaction.

Why it doesn’t always work that way is because in addition to the buyer and seller, another party may be involved—the mortgage lender. The National Association of Realtors® puts it this way: as “the increasingly common scenario [that]…even when both sides agree on a price, the deal could fall apart thanks to an under-appraisal.”

The situation where buyer and seller agree on a fair price—but the bank’s appraiser determines a value that falls short—usually means that a sufficient loan won’t be offered. Bankers are required to protect the bank, and if they aren’t reassured that the equity in the loan’s underlying collateral supports the mortgage amount, okaying it would expose the bank to a loss. 

Bankers would rather not.

But Minneapolis homeowners on the verge of a sale can head off the problem. The solution is to address deferred maintenance and significant repairs or, per the NAR, “any condition that affects safety, soundness or structural integrity.” It’s a cinch that the best comparable sale figures reflect homes where those issues were addressed.

There are also some less-obvious actions Minneapolis homeowners can take. For instance, some experts advise removing sensitive or religious pictures before an appraiser’s visit. The reason isn’t because of any prejudice from the appraiser. Rather, since rules prevent an appraiser from violating a homeowner’s privacy, some photographs of rooms might not be allowable—resulting in a report that lacks sufficient photographic documentation!

An accomplished Minneapolis Realtor will advise you on how to best prepare for an appraiser’s visit, as well as make sure the appraiser has all the details needed to prepare the kind of comprehensive report that lets bankers sleep at night. This is part of my service—and another good reason to give me a call!


Thinking about Selling? I can help you sell your Minneapolis home in 90 days Guaranteed. Send me an e-mail at TimMurphy@MetropolitanHomeTeam.com . I will contact you for a FREE No Cost, No Obligation consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call/text me at 612.470.SOLD

Discover how other sellers successfully SOLD their home quicker and for more money. Request a free consultation by Clicking Here.

Thanks for reading this, 


Tim Murphy

Tim is a local Minneapolis real estate agent @ Re/Max Results
Phone: 612.470.SOLD(7653)

P.S. Please feel free to call or e-mail me at anytime for a FREE No Cost, No Obligation Consultation. My goal is to help as many families as I can.


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 Important Notice

Copyright 2015 Murphy Inc. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Tim Murphy’s personal views and do not reflect the views of Metropolitan Home Team.