appraisal issues: Will Low Appraisals Become a Problem?
- 02/21/23 11:18 AM
The spring 23 market is on around Atlanta and other areas, as the market heats up so do the questions. Will low appraisals become a problem again? After the nonsensical last two years, underwriters and lenders are tightening the reins when it comes to appraisals. Low Appraisals Become More Frequent Already this year, there has been an increase in appraisal related issues. Most frequent with VA and FHA loans as underwriters get back to holding the appraisals to strict underwriting. Appraisers have been receiving updates from FNMA as well, reminding them of "best practices" as the early 2023 housing market evolves. It would be … (1 comments)
appraisal issues: What Happens if the Appraisal Comes in Low?
- 01/19/23 07:17 AM
The hangover from the real estate market nonsense of the last couple of years continues. Everyone needs to reacclimate themselves with accurate pricing, contingencies, contract language and the many steps of getting a deal closed. One of the most challenging parts will be appraisals and knowing what happens if the appraisal comes in low. Lenders continue to issue bulletins to appraisers reminding them that the best comps are the most current. In other words, use closed sales that reflect the changing market. Underwriting is also closely evaluating the market conditions form, appraisers are expected to accurately reflect the market, not simply rubber … (15 comments)
appraisal issues: The Love Hate Appraiser Relationship
- 01/01/23 12:12 PM
He loves me, he loves me not. Really, he doesn't care, he's just doing his job. Agents love the appraiser when they get the results they want. When they don't, appraisers are the source of agent temper tantrums. The love hate appraiser relationship. Home sellers have similar reactions to appraisers. When they hear a number they like, "the appraiser said this house is great, look". When that number isn't what they want, "yeah. I had a some dumb appraiser say that...". Nevermind that so much depends on the type of appraisal completed. One completed for mortgage purposes is drastically different than a … (0 comments)
appraisal issues: BOA Sending Appraisals to India for Review - Yes, That's Correct
- 07/13/13 02:25 AM
Bank of America Corp has opened a unit in India to handle the work of reviewing appraisal reports as they try to rebuild their share of the U.S. mortgage market at a lower cost. Unskilled reviewers in the new Bangalore office follow checklists to determine if appraisals are complete, said the people, who requested anonymity because they weren’t authorized to comment. The firm also eliminated jobs of licensed U.S. workers in its LandSafe business, the appraisal division of the Charlotte, North Carolina-based company, which made $78.7 billion in loans last year according to Bloomberg. Workers in the new Bangalore office follow checklists to determine if appraisals … (3 comments)
appraisal issues: Ideas to Avoid Appraisal Issues
- 11/26/12 05:16 AM
Appraisals continue to be a potential issue with every contract; we expect this to worsen come the spring ’13 market. What if agents and sellers calmly considered options before problems arose; took a step back to think ahead? What if instead of trying to fight a losing battle after a contract is submitted, appraisers were consulted prior to the event? What if sellers went in with something to legitimately challenge a low appraisal with? Like another appraisal? Sellers planning to list over the next few months would be very wise to consider the expected turbulence; we see a challenging market due … (0 comments)
appraisal issues: Are Appraisers Holding Back the Recovery?
- 10/18/12 05:11 AM
The appraisal conundrum continues to rage, we expect this is just a glimpse of what we’ll see come spring. Continued smothering appraisal underwriting, a shortage of closed sales available for use as comps and sellers expecting higher prices due to the “improving” Atlanta market will combine for a testy spring home selling season. But the apparent disconnect between appraisers and agents need not wait for spring. Appraisals have been blamed on derailing a lot of sales in recent years. In fact, more than one-third of REALTORS® recently reported that deals were canceled, delayed, or renegotiated to a lower price due … (4 comments)
appraisal issues: How Many Sales are Lost Due to Low Appraisals? Depends Who You Ask
- 10/10/12 12:30 AM
The issue of “low appraisals” and deals being “lost” in the Atlanta real estate market because of poor appraisal quality is one that isn’t going away anytime soon. Agents continue to share stories of seemingly solid Atlanta real estate agreements gone bad as a result of an appraisal that failed to support the contract price. The consequences are not pleasant and some deals will fall apart, other times sellers accept less to get the deal done, buyers add cash to increase the down payment or agents might give up part of their commissions. While the idea of challenging an appraisal may … (8 comments)
appraisal issues: Street Names Can Influence Appeal & Value
- 10/05/12 12:21 AM
Would you put a buyer in a community named "Murder Heights"? The street name of a neighborhood can affect the asking price on a home, at least according to a new survey by Trulia. Trulia analyzed the median asking price per square foot among various types of address suffixes, like “Lane” and “Park.” Street addresses with the words “Boulevard,” “Place,” and “Road” were found to have higher average asking prices than homes with addresses ending in “Avenue,” “Drive,” or “Street,” according to the Trulia study. For example, homes that were located on streets with the word “Boulevard” in the address sold … (0 comments)
appraisal issues: Crying About Comps? Put ALL Listings in the MLS & Help Appraisers!
- 09/28/12 12:21 AM
“I use the MLS for comps; I don’t have time to dig through public records. And who knows what the terms of those transactions were anyway”. That was told to me by an appraiser that I met at a new home that we had an offer on. I heard similar comments from other appraisers I’ve meet at my listings and appraisers that I know in the business. This is yet another reason for appraisal issues and one that I think will become more troublesome come the spring market.Did the Market Act on that Sale?A comparable sale should be one that is … (2 comments)
appraisal issues: Appraisal Smoking Gun? Pressure to Surpress Values?
- 09/11/12 01:09 AM
Quality Mortgage Service believes some appraisers are systematically being pressured to use a subset of market data that skews the calculated market value of the property backing the disputed mortgage. QMS says the scheme, which it calls FRAFing, or field review appraisal fraud, is often found in appraisals when mortgage repurchase demands are pushed backed to lenders for a claim based on a field review appraisal value. “The appraiser or someone is manipulating data and/or information in sections of the appraisal to obtain a targeted value result,” QMS President Tommy A. Duncan says. “They are ignoring the higher value of comparable … (1 comments)
appraisal issues: Appraisers Not at Fault for ‘Low’ Home Values
- 07/16/12 09:20 AM
Intuitively we agents understand that many of the appraisal issues being experienced are due to more than "poor appraisers". Just as the sales business has agents that should be doing anything but advising buyers and sellers, so too does the appraisal industry. The major difference however are the number of influences directly impacting the appraisal industry in this current market. How many agents would thrive with underwriter and reviewer hands around their necks? With an unprecedented level of micromanagement? With being forced to accept slashed fees and increased report requirements? The Appraisal Institute finally did something worthwhile and published a short … (1 comments)
appraisal issues: Accuracy of Appraisals Is Spotty, Study Confirms
- 05/09/12 02:01 AM
"...At the extremes, in 121 instances, the appraised value was more than double the sale price, and in 132 examples, the appraisal was less than 70 percent of the sale price. It is like a game of horseshoes and throwing grenades,” the authors wrote of the results. “This study confirms what many of us have thought but heretofore have only known anecdotally: that appraisals are not very accurate. Close is good enough".
Wow. The NY Tiimes released this detailed study of appraisals completed on commercial loans that went bad. It's very alarming as the "help" from Washington continues to do … (13 comments)
appraisal issues: Appraisals Continue to Be an Issue
- 05/07/12 08:23 AM
Tens of thousands of homeowners continue to have trouble taking advantage of historically low interest rates. Real estate agents and home builders complain that between 10%-40% of their contracts either require modification or fall apart. The culprit? Real estate appraisals that fail to support value. Are appraisers told to come in low? Is there motive? No and no. The first thing to remember is that an appraiser does not set value, the market does. The indicated value of the appraised home is set by recent comparable sales in the same area, including short sales and foreclosures. Appraisers have explicit guidelines to follow … (16 comments)
appraisal issues: Assessor and Appraisers Targeted for Incompetence in Atlanta
- 04/29/12 02:49 AM
Appraisal issues have been at the center of the real estate boom and bust. In the current environment, appraisal issues continue to be front and center when contracts go bad. Much of problem can be attributed to the “help” provided by Washington but just as much blame belongs on the industry itself; incompetent, lazy and dishonest appraisers remain in the field contributing to the problems. Well perhaps in Atlanta, some positive movement is starting. The AJC broke a story that yet another member of the Fulton County Assessor’s Board faces an investigation by the Georgia Real Estate Commission and Appraisers Board. … (2 comments)
appraisal issues: How Do You Challenge a "Low" Appraisal?
- 11/28/11 02:15 PM
Have you had an appraisal “come in low”? If so, you’re not alone as the “appraisal wrinkle” is causing chaos with both purchase and refinance transactions. How do you challenge a low appraisal? Assuming of course you have a legitimate case... Appraisal challenges continue to increase as the market struggles; 10 percent of the nation’s Realtors said they had sales canceled because appraisals came in below the prices buyers agreed to pay, according to a recent survey by the National Association of Realtors. Another 15 percent said contracts were renegotiated after appraisals came in below contract; sellers dropped prices or buyers put … (13 comments)
appraisal issues: Appraisal Issues? Thank Washington's Micromanagement
- 11/02/11 09:07 AM
Once again appraisers are in the cross hairs, the incessant screaming is that we’re “killing deals” and "hampering any real estate recovery" chatter is heating up. Low appraisals, incorrect appraisals or appraisers not being familiar with the area in which they work are the topics of conversation around the real estate water coolers. Most of it is total nonsense for several reasons: Appraiser fees have been significantly cut while requirements have increased. Now more than ever to make a living they need volume; that comes with reports that don’t get pulled for review – and that’s done by meeting the current … (3 comments)
appraisal issues: Challenging Low Appraisals
- 11/01/11 02:44 PM
As if there weren’t enough land mines to dodge and punji pits to avoid in the current Atlanta real estate market, we continue to see a steady increase in the number of appraisal issues. Low appraisals are most common with refinance loans but over the last year appraisal challenges continue to increase on the sales side. The struggling Atlanta real estate market is similar to the national one; 10 percent of the nation’s Realtors said they had sales canceled because appraisals came in below the price buyers agreed to pay, according to a January survey by the National Association of Realtors. … (8 comments)
The HMT blog is written by Hank Miller of The Hank Miller Team. He is a licensed broker and certified real estate appraiser in the state of GA. Since 1989, real estate has been his full time occupation and Hank consistently ranks at the very top of Atlanta area agents in overall production. He is known as much for his attention to detail as he is for his candor.
The spring 23 market is on around Atlanta and other areas, as the market heats up so do the questions. Will low appraisals become a problem again? After the nonsensical last two years, underwriters and lenders are tightening the reins when it comes to appraisals. 
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