When an appraiser is selected from a pool without regard to their knowledge of the area you end up with valuations well below or above what the property is really worth.
I had personal experience with this. I was trying to refinance while the rates were at an all time low. My mortgage company had me pay 900 dollars for an appraisal, even thought local companies were charging 400. When the appraisal company representative came out they were from way outside of the area. The appraisal came in so low the Mortgage company contact person called to apologize and sent someone else. Again outside the area, but this time perhaps only 50K lower than I had expected. This process took nearly 3 months.
I hope the proposed "Consumer Financial Protection Agency" brings something better. The valuation code now in place is the product of a settlement among NY Attorney General Andrew Cuomo, Fannie and Freddie, and the House Finance Agency.
Somethings got to give.
But, Keep Smiling, it makes you feel good.
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