Castro Valley CA Real Estate Agent Murline Monat Discusses the Role of Appraisals and Pricing in the 2015 Market with Low Inventory and High Demand

Share Article

Murline Monat discusses Kathleen Pender’s San Francisco Chronicle’s article about the role of appraisals in the San Francisco Bay Area real estate market where 25 percent of purchases are all cash.

According to the California Association of Realtors (CAR), the average Bay Area Home sold for 7.1 percent more than the asking price. This is the largest percentage since January 2008, when CAR first started keeping track of this statistic. Kathleen Pender of the San Francisco Chronicle, stated in her article titled “Price jumps may make appraisers balk” published earlier this month (1) discusses what happens when a real estate appraisal is lower than the negotiated sale price.

The role of the real estate appraiser is to protect the lender. According to Murline Monat, real estate agent specializing in Castro Valley neighborhoods, located in the foothills of the San Francisco East Bay Area, market prices are ascending. However, there may be insufficient comparable data for the appraiser to choose from with buyers requiring a loan to purchase a home. This is a transitioning market, similar to the 2007-2009 decline in pricing, however prices are rising at this time. Comparable data may not exist.

A cash buyer that is willing to pay over the asking price will most likely get their offer accepted over buyers needing a loan. In some areas there are sufficient data and the appraisers can then justify the higher prices for lending purposes.


According to Murline, many sellers will list below market, to generate multiple offers on their properties, and causing the final sale price to be substantially higher than the asking price.

Ms. Pender says that when an appraiser is preparing an appraisal, lenders want to see at least 3 comparable homes that have sold in the last 6 to 12 months, and want to see current listings in the neighborhood. Occasionally, appeal can generate a higher price, however, sellers must understands that appraisers are bound by their guidelines.

Even in this market, Murline notes, the appraisal may come in lower than the negotiated sales price. If this happens, the buyers have several options: ask the seller to lower the price, increase the down payment, try a different lender, or call off the deal. One example of a negotiation like this was a triplex in Alameda. There were no comparable properties to justify the price, so the seller lowered the price and the buyer and seller split the remaining difference.

Murline cautions sellers that appraisers have different backgrounds and experiences with the same guidelines. Consequently, different appraisers will perceive the home differently and place diverse values on the same home in a specified time frame. Along with comparable data, appeal can make a difference.

About Murline Monat, Realtor®

A long-time Bay Area resident, Murline brings a wealth of knowledge and experience to her realty career – including an M.S in Industrial Psychology, building her own home. Her background makes her an excellent champion for her clients. By ensuring her clients are appropriately informed throughout the purchasing or selling process, coordinating all the parties involved, and negotiating the best deal, Murline’s reputation in the community and real estate industry is impeccable.

She combines many aspects of her prior career into real estate. She comfortably guides her clients through important lifestyle choices. These decisions “bring great comfort and satisfaction to individuals and to families. I love being a part of that process.”

A Bay Area resident since the age of 5, Murline and her husband made Castro Valley their home because of its central location for both of their careers at the time. While a practical choice, the decision to live in Castro Valley has always been a happy one.

Contact Information

Murline Monat
Empire Realty Associates, Inc.
Danville, CA 94526
925-523-9852 MMonat(at)EmpireRA(dot)com


Share article on social media or email:

View article via:

Pdf Print

Contact Author

Suzanne Bourgault
+1 (925) 822-7152
Email >

Suzanne Bourgault
Visit website