Fighting back against lowball home appraisals

By
Real Estate Broker/Owner BRE# 01353757
http://actvra.in/Dng

Consumers and specially people that are trying to sell, buy, rent, or refinance their homes; save their homes from foreclosure; or sell their properties might hear some different stories and feel differently about the news and how they might be affected by it.  Here is an interesting report worth a few minutes of your time:

 



The Wall Street Journal
Fighting back against lowball home appraisals
Record-low interest rates are a boon for home buyers and for homeowners seeking to refinance.  But low appraisals are making it difficult or even impossible for some borrowers to take advantage.

Making sense of the story

  • Lenders report that “overly pessimistic appraisals caused by appraisers using distressed sales as ‘comparables’ are a key reason why deals are falling through.
  • Part of the problem is that home prices have plummeted further than many people would like to believe.
  • Another key factor is the appraisal changes enacted in the wake of the financial crisis that were designed to eliminate improper pressure on appraisers that often led to inflated valuations during the housing boom.  However, critics say those changes resulted in unnecessarily conservative valuations and the greater use of appraisers with little knowledge of local market conditions.
  • Additionally, accurate valuations can be difficult to come by when sales are thin and prices are just beginning to edge upward after prolonged declines.  Many borrowers are “in a holding pattern for extended periods” because it’s difficult to find comparable sales to support the appraisal value.
  • Despite these issues, there are ways consumers can improve their odds of getting a deal done.  For example, borrowers can look at comparable sales from the last three to six months before seeking a mortgage to know the range of home values in the area.
  • Secondly, although borrowers cannot choose their appraiser, they can accompany the appraiser during the inspection, pointing out improvements that add to the home’s value.  They also can provide the appraiser with comparable sales that can be used to support the valuation.
  • Borrowers also can request that the lender review the appraiser’s findings, though the chances of success are slim.  If the borrow thinks the value is unreasonably low, they should first look for factual errors, such as an erroneous number of bedrooms or miscalculated square footage...

 

Read the full story.



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Broker, Agent, or/and MLS provider does not guarantee the accuracy of: 1- the reports, charts, articles, and also the information from links to other websites. 2- Square footage, lot size or other information regarding the conditions or features of properties provided by the seller or obtained from Public Records or other sources as presented in this website. Many articles may be time and date sensitive so please always look at the date posted. Consult your tax advisor, financial planner, attorney, or/and appropriate professionals concerning your personal specifics. Interested parties are advised to independently verify the accuracy.                                                            

                                                          Frank Moham  DRE LIC. #01353757

 

 

 

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Rainmaker
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Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Frank, we are seeing a bunch of inexperienced appraisers lately who ae messing up the values.  But under the new rules it is tough to challenge them.

Jul 02, 2012 03:16 AM #1
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Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Frank, low appraisals due to low comps is a part of my everyday life as a Realtor today.

Jul 02, 2012 03:46 AM #2
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Rainmaker
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Frank Farahbakhsh Moham

ABR®, ePRO®, GREEN®, TRC®, VRM®, SFR®, REALTOR®
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