With the rise of Automated Valuation Models (AVMs), some have questioned whether the traditional appraisal process is ‘broken’, claiming that values get inflated, numbers are manipulated, and deals are set up to fail.
While those thoughts make great headlines, the truth is far less dramatic. When done right, appraisals are designed to protect lenders, investors, and homeowners, not put them at risk.
In this blog, we’ll break down common appraisal myths and share how the TAG team works to prevent these issues from the start.
Myth #1: Appraisals Just Inflate Values to Match Contracts
- Common Opinion: Collusion or inflated contracts can lead to inflated appraisals.
- TAG’s Reality: We independently assess both As-is and As-Repaired values using market-based comps, neighborhood trends, and on-site condition analysis.
- The Result: Instead of “hitting the number”, we deliver valuations you can trust. No guesswork, no “smudging” of numbers. Just clear, up-to-date facts.
TAG Tip: When necessary, we also provide an Appraisal Update/Completion Report (1004D) to confirm that any required work noted in the original ‘As-is’ report has been completed. This is especially common with new construction projects. In these cases, a completion report is submitted once construction is finished to verify the property’s value.
Myth #2: Borrowers Can Persuade Appraisers
- Common Opinion: Appraisers often rely on borrower conversations to shape ARV (As-Repaired Value)
- TAG’s Reality: Our team-based model separates data collection from valuation. Field appraisers document property details on-site, while valuation specialists independently analyze the budget, comps, and market trends. Before final delivery, the appraiser and valuator review the report together to ensure alignment and accuracy.
- The Result: Every report is reviewed, eliminating single points of influence. The outcome is collaborative, accurate valuations that are resistant to manipulation.
Myth #3: Renovation Budgets Go Unchecked
- Common Opinion: Appraisers overlook renovation budgets
- TAG’s Reality: Every ARV we deliver is based on the intended budget required
- The Result: Every report is grounded in real market expectations, giving clients clarity and confidence in their investment decisions.
TAG Tip: A common misconception is that spending $50,000 on renovations automatically adds $50,000 in equity. Our ARV reports show the actual equity gained from your renovation plans, helping property owners determine whether to proceed or reevaluate their project.
Top Reasons to Choose TAG for Your ARV Appraisals
- Local Expertise you can trust: With deep knowledge of Charlotte, Raleigh, Greensboro, Fayetteville, Wilmington, and beyond, our valuations reflect precise local trends.
- Fast Turnaround without cutting corners: Appraisal reports are delivered 2-3 business days post-inspection, keeping your deals moving.
- Experience through every market shift: From the 2008 housing crisis to COVID-19 and the recent refinance boom, our team has delivered accurate, reliable valuations in every environment.
- Defensible, reviewed reports: Every appraisal is USPAP-compliant and trusted by lenders, attorneys, investors, and builders.
Appraised to fail? Not with TAG. Choose a partner who delivers fair and accurate As-Repaired Value (ARV) appraisals- TAG us in!
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Thanks for reading! We love sharing insights from the TAG team, and we’re always looking to connect with others who are passionate about real estate, marketing, and community.
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