Appraisal disputes can be tricky, but staying calm and focusing on the numbers helps. Sometimes the numbers just don’t line up, and it’s important to understand why they don’t. Know the Market: If the appraisal’s low, I’ll dig into local market data to show why it might not reflect current trends. This can help in negotiations. Consider Concessions: If price is an issue, offering repairs or credits can help bridge the gap without lowering the price. Appraisal Reconsideration: Some companies allow you to challenge the appraisal with additional comps or evidence, so it's worth exploring. Keeping things collaborative, rather than making it an adversarial back-and-forth. Negotiations —just need to find a common goal and work toward it!

Resolving valuation disputes requires focusing on two key factors: 1. Expertise in valuation. First and foremost, it’s crucial to have a realistic understanding of the property’s market value. If this aspect is unclear, prioritizing an accurate appraisal is essential—rather than navigating between buyers and sellers without sufficient expertise. 2. Communication skills. Strong communication skills help understand the motivations of both parties and strike a balance. This not only reduces tension during negotiations but also fosters long-term trust-based relationships with clients and partners. Such an approach ensures a more comfortable and effective negotiation process.

This requires open communication and a willingness to be flexible on both sides. Buyers and sellers can address differences by considering alternatives such as negotiating a price adjustment, offering concessions, or revisiting comparable sales data. A collaborative approach, where both parties understand each other's perspectives and work towards a fair resolution, often leads to a mutually beneficial outcome.

Yes, finding common ground between buyers and sellers in appraisal disputes involves facilitating open communication, presenting market data, and negotiating mutually acceptable adjustments or terms.

Appraisals are opinions of value based upon historic information. They cannot be expected to predict future values so when there are disparities between appraisals it can be helpful if one party is able to explain why the other party’s appraisal may be flawed in’s or way or even less relevant because of some of its assumptions or conclusions. Pointing out these types of issues or distinctions can help parties find a common ground, and they may realize that the appraisals are just one type of information that the buyer and seller can use in deciding if a deal can be made or will fall apart, but ultimately the parties will give whatever weight they feel is appropriate to the appraisals and other considerations may be more important.

Valuations in commercial real estate are not easy. You compare the ongoing sale price in the area. Then you compare the ongoing rental Lastly, ongoing cap rate. Disputes arise when there is a gap between the expectations of the vendor and the buyer but can be resolved amicably. Reasoning: with right reasoning, both vendors and sellers can give the justification of the price by quoting right comparable. Circumstances: The price also depends on situation of vendor and the buyer. The more desperate the buyer or if there is competition, it will command a good price for vendor. However, the more desperate the seller is, that benefits the buyer. Conditions: Sale price is not everything, conditions matter a lot too.

An interesting concept, my view of appraisal based on market consensus is that it’s entirely flawed. Market consensus ignores both parties reasons for the sale and acquisition in the first place. Firstly understand each others drivers, why are you and they at the table in the first place? Then you can understand the value from each perspective, once persons cheap deal is another’s expensive. Appraisal is just a rubber stamp on decisions already made. Hopefully not to contentious!

From My experience throughout the years servicing in the industry. Regardless of any country in the world the case will go with a saying : willing buyer willing seller theory as if things were to follow the book to stringently case will never be resolved. Real estate and many industries require ‘human touch’ , we cannot follow the book too strictly as it will only cause complications

Well the negotiations are part of any deal. There are 3 type of seller as per my experience. First type is a seller who is constantly changing his price, it is not worth negotiating with that kind of sellers, as they don't let off their greed. Second type is a seller who are fixed to a price and don't negotiate further, you can communicate with these seller and reason with them on the asking price and offer in hand from the buyer. Third type is a seller who understand the market(if it is seller market or buyer market) and act accordingly on the offer in hand.