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Appraisal Criticism Mounting

By
Services for Real Estate Pros with HouseHunt.com DRE# 01297932

Appraisal changes instituted because of the financial crisis were intended to eliminate pressure on appraisers that occasionally led to inflated valuations during the housing boom. So much for that theory because critics are now saying that the changes resulted in conservative valuations and the increased use of appraisers with little knowledge of local market conditions. Other things appraisers have been taking heat for recently are that home values aren’t matching a listing or contract’s price and valuations are unfairly weighing distressed properties into the equation.

The best thing you can do as an agent is get educated on the appraisal process and the report itself. It’s another thing to add to your to-do list or to-know list, but the process is becoming increasingly heated and affects buyers and sellers, so no matter who you’re working with it could delay or derail possible transactions.

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Cindy Hallas
Amerifirst Financial, Inc. - Scottsdale, AZ
Sr. Mortgage Loan Originator NMLS # 334571

Great content Jaime and a very good read!  Keep it up!  :)

Jun 11, 2012 02:18 AM
Eric Peltier
Eric Peltier - Premier Mortgage Group - Boulder Colorado - Boulder, CO
Mortgage Lender in Boulder CO

Great post!

A really odd thing happened when HVCC took effect a few years ago.  The Green, inexperienced, or crappy Appraisers jumped on the AMC bandwagon immediately, because they saw (correctly) that joining an AMC meant a nice flow of orders and the quality of the Appraisals they delivered matter almost zip.

I had several GREAT Appraisers that I worked with delay signing up with an AMC, because they were busy (because they were GREAT.)  Once these GREAT Appraisers had to sign up with an AMC, many AMCs were _FULL_.  They were not adding to their rosters.

Several of these GREAT Appraisers are still recovering from this sad situation.  And what good did this do for homeowners.....?

Jun 11, 2012 02:31 AM
Phil Hillerman
Crye-Leike Realtors® - Rogers, AR
Crye-Leike Realtors®

This is another great example of good attentions creating unintended consequences.  We've even gotten appraisers that did not have access to the local mls, makes it very hard to do a valid appraisal.

Jun 12, 2012 02:07 AM