Real Estate News and Market Moves Week 115

Why Appraisals Matter More Than You Think in Real Estate

In this week’s blog, I am turning it over to the Market Sales Manager and Broker for Auben Texas, Bernie Anderson. She will be discussing the importance of appraisals in today’s market!

When I started in real estate back in 2002, I didn’t fully appreciate the role appraisals played in a transaction. But after becoming a Certified Residential Appraiser, I can confidently say: appraisals are one of the most critical, yet misunderstood, parts of the real estate process.

How Things Changed After 2008

Before the 2008 housing crisis, appraisals were rarely a roadblock. But post-2008? Everything changed. New regulations, tighter lending practices, and stricter standards reshaped the appraisal industry. The job became more detailed and demanding, and the appraiser’s role even more vital.

Who Does the Appraiser Actually Work For?

Contrary to what many believe, appraisers don’t work for the buyer or seller—they work for the lender. Their job is to provide an Opinion of Value that ensures the property is worth the loan amount being requested. Each appraisal is prepared for a specific lender, meaning each report has a different set of expectations and oversight.

What Goes Into an Appraisal?

A lot more than people think. Appraisers must research and analyze:

Recent comparable sales (ideally within 1 mile)
Age, square footage, and lot size
Property condition and amenities (pool, workshop, etc.)
Zoning, flood zone, and neighborhood
Number of bedrooms and bathrooms
Sales history of the property and comps
Market trends and current active listings

All of this is packaged into a 10–20 page report, plus a Market Conditions Report that gives lenders insight into current trends.

Important Truth: Appraisal ≠ Sale Price

An appraisal supports the contract price—it doesn’t set it. A property can sell for more or less than the appraised value depending on buyer demand, emotional appeal, or market shifts. The purpose is to protect the lender, not guarantee the seller or buyer a certain price.

Final Thoughts

Appraisers do a tremendous amount of work behind the scenes, often for modest pay, and their role is essential to keeping real estate transactions stable and fair. If you’ve ever questioned the value of an appraisal, just know—it’s the glue holding the financing process together.

Connect with Bernie if you have any questions or if you are looking for investment opportunities in the Dallas-Fort Worth region!

469-706-0045

banderson@aubenrealty.com

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