Orlando area residential real estate specialists, covering Orlando, Oviedo, Winter Springs, Lake Mary, Longwood, Altamonte Springs, Maitland, Winter Park, Casselberry, Geneva, Chuluota, Sanford, Apopka, Windermere, Dr. Phillips, Lake Nona.


Happy May! Hope you are enjoying the remaining days of Spring.

We will continue on the topic of real estate appraisals from last month:


When a real estate agent performs home valuations, there are usually 2 different scenarios:  (1) Buyer CMA.  This is when a buyer sees a home and wants to know if the listing price is low, fair, or too high.  A Buyer’s Agent will look at what similar homes have sold for in the neighborhood to answer that question.  (2) A seller wants to know what his home will sell for.  That, I believe, is the most difficult and skill-based valuation of all, because it is a forward looking statement.  It is essentially a forecast, a prediction.  It’s a “crystal ball” expectation.  A stock analyst can tell you how a stock has performed in the past.  But to predict how a stock will perform in the future is clearly the more difficult task.  To predict what a home will fetch in any given market combines “art and science”.  It contains both objective components and subjective assumptions.  The experience and skill of the agent and the quality and accuracy of that prediction is a factor that contributes to a home that sells fast and high, or lingers on the market for months or even years and eventually expires or sells for lower than market price. 

I have high respect for appraisers.  Their training and expertise related to property valuation is vastly superior to an average agent.   Our function and approach differ in that:

(1) When I evaluate a home, my customer is the seller.  My objective is determining the “market price” of a particular home. By “market price”, I mean the price a home can achieve in an open market, in an arms-length transaction.  This incorporates an intimate understanding of buyer behavior as well.

(2) In a mortgage appraisal, the appraiser’s customer is the bank.  He determines “collateral value” of a home based on a complex list of ever changing rules set by the lending industry.  A mortgage appraisal is reviewed and scrutinized by underwriters before it’s accepted by the bank.  Rules and guidelines are strictly followed.  An underwriter often challenges an appraisal report and the appraiser has to justify and defend his work.

In the majority of cases, my work and that of an appraiser concur. I list a home at my projected market price, we achieve contract at or near that price, and the subsequent appraisal supports the value. Transaction closes smoothly and successfully.

However, sometimes the appraisal comes back below the contract price.  The reasons are case-by-case, but based on what I wrote in 1 and 2 above, there are simply divergent viewpoints that are hard to reconcile.  For example, would you pay more for a home that has a brand new roof and A/C system, so you wouldn’t have to worry about them in the next 15 years?  Would you pay more for a home whose kitchen is equipped with gorgeous top-of-the-line Viking or Thermador appliances?  I know I would.  Those things have value to me as a buyer.  However, you will not see them in an appraisal.  Why not?  The bank rules say so.  In the next issue, I will talk about what happens when appraisals come back low.  Also, I will discuss how appraisals can sometimes be higher than market value!

Until then, take care!  See you next month!

Yien & The Yao Team




*Finding Your Next Home or Next Investment*

Take advantage of a professional buyer consultation. The Home finding process is not just a database search. Nothing replaces the value of working with an experienced buyer representative. Have a conversation about what you want, and we will work together and guide you towards your dream home.


*Selling a Home*

To maximize your chance for selling and at the top possible price, you truly need an exceptional team that has the means and systems to give your home the maximum exposure, a seasoned negotiator that has the skills to represent your interest, and an experienced guide to navigate pass the many pitfalls of a real estate transaction. If you are thinking about selling your home, please give The Yao Team the opportunity to show you how it does pay to hire a specialist.

The Market is Always Changing!
Market Trend Knowledge is Paramount!

In the last 13 years, Orlando’s real estate market went through an unprecedented upheaval, on a scale much more exaggerated than what the nation experienced as a whole. In early 2000’s, Orlando enjoyed aggressive home price appreciation. This attracted investors & speculators from around the country & even internationally.  This in turn drove the demand to a fevered peak up until early-mid 2005.  We now understand this was driven by unsustainable lending of easy money. The market started turning in late 2005 and spent 2006, 2007, 2008, and 2009 in decline. In 2011 the market found “saw-tooth bottom”, driven by a different kind of investor demand.  Home prices are have been rebounding since 2012.  We will discuss the current market condition with you in depth.  You need the up-to-date market information to help you make the right decisions.



To sell a home in a shifting market, you must market your home expertly & price your home competitively. Your home must be staged & show-ready in order to capture the buyers that do come through your home. To maximize your chance for selling and at the top possible price, you truly need an exceptional team. We have the means and systems to give your home the maximum exposure. We are seasoned negotiators that have the skills to represent your interests and help you navigate pass the many pitfalls of a real estate transaction. If you are thinking about selling your home, please give The Yao Team the opportunity to show you how it does pay to hire a specialist.  

We Can Make the Difference
Are you feeling overwhelmed? Buying or selling a home is one of the biggest decisions you'll ever make. A professional who is understanding and dedicated to your needs is an invaluable partner in achieving your goals. As full-time agents, we are  committed to helping you through the entire process, making your real estate transaction a positive and rewarding experience.

  • Your best interests are our top priority.
  • Our focus is on giving you personal attention and the best service.
  • We know the local neighborhoods, schools, market conditions and more.
  • We will make your transaction as smooth as possible.


Get the advice you deserve
The Internet is a great place to find information. But it can't give you the in depth local knowledge and personal service of a local real estate agent. The challenges are getting more complex every day.   Finding the right home for the buyer or bringing the right buyer for the seller is only half the process.  Managing the whole transaction from the skillful negotiation of a contract to finally bringing it to a successful closing takes a full blend of contractual knowledge, transactional experience, patience, diligence, and creativity. You need a professional that is on top of the market who will protect your interests and guide you through the transaction step by step.

Call for a Consultation today
We would be honored for the chance to help you. Please call or e-mail us for an appointment to discuss your real estate needs. Thanks for stopping by our website. We're looking forward to hearing from you!





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