I just finished reviewing a condominium appraisal in Davenport, Florida from October of 2005. Another appraiser who over inflated the value by $50,000! When you have to go 6+ miles for comps, and ignore 222 closed sales within a 5 mile radius…you are REALLY working hard to hit that sales price!
Appraisers are not supposed to ‘hit a number’ or ‘support a sales price’. They are to be auditors of the transaction.
Imagine if this buyer, who now has lost this unit to foreclosure and perhaps faces judgments and financial hardship as a result, could have been told, “you are paying $50,000 too much for this unit when compared to the rest of the market around you.”. Imagine if they had that choice or option?
Sure, they likely would have been mad at the appraiser for ‘killing the deal’. But hindsight is now 20/20 !!!