New appraising guidelines needed

There needs to be more clearly-defined guidelines in the appraisal of distressed properties, according to a report from the National Association of Home Builders. Using foreclosed and distressed sales as comparables with appraisals on single-family homes without adequately reflecting the differences in the condition of the respective properties is needlessly driving down home values, the NAHB said. "Any home buyer can recognize the difference between a well-kept home and a distressed property that is damaged or not property maintained," said NAHB chairman Joe Robson. "It only makes sense that an appraiser should be required to consider the overall condition of a property and the specific factors related to a foreclosure or distressed property sale when selecting and adjusting the value of comparable."