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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