It seems many appraisers are taking on more than they should and they output of their work seems to be a poor quality work and an F on the job performance. I recently had a property where the appraiser got the square footage of the home wrong substantially, missed adding a bedroom, a bathroom and would not take my call to address the errors as it was "inappropriate" and guess what happened? The home came in substantially below the offer price. Additionally, they used a recent REO (bank owned property which we all know pushes neighborhod values down) which should not have been included as it was a quick bank sale that is by no means the normal sale in Sherwood Market. Hence, not only did the sales price of the home drop from it's true value market value but the entire neighborhood's home values dropped because of one faulty appraisal. On top of that, no one in this particual appraisers office seemed to care about the poor valuation.
Many who read this may not quite grasp the enormity of it all but there are a couple of reasons this affects us all.
•1. It affects the entire real estate market because I am hearing this complaint from realtors and lenders nationwide. Poor appraisals affect us all at the end of the day.
•2. It specifically affects a neighborhood and I'm sure everyone has a home near them for sale.
•3. If you own a retirement and/or mutual fund, chances are your portfolio and retirement is somehow tied at least to some degree to mortgage backed securities and these poor quality appraisals affect the bottom line security asset your money has been invested. Homes.......
I rarely blog but finally think I have found a great way to vent wrongs... :)
PS. Thank you for replying to my blog early risers and as such, I should have cleaned the sleep out of my eyes before posting or at least finished the 1st cup of coffee. :)