"INSERT EQUITY HERE!"
We all know there has been some terrific controversy concerning some of the less reputable appraisers that inflated values during the recent market in order to obtain value that just wasn't there.
There are some appraisers that are still riding that last wave until someone stops them...AND THEY WILL. I see several license suspensions on the Colorado Department of Regulatory Agencies web site for both licensed appraisers and real estate professionals.
If I were an appraiser, you can bet that I would be as fair as I could by using viable comparable and actual, documented information pertaining to the properties that I was appraising...now more than ever because there may be some undue scrutiny of even the most experienced, reputable appraisers.
This is the case also in the Real Estate and Mortgage industries as well. The point I want to make is that I feel it is EQUALLY disturbing that this new trend of "low balling" to be on the safe side is popping up lately in the deals that I've seen in my office.
We are small and have just 7 agents, all active to some capacity, so I do have involvement in each of their deals. I notice that the last two VA Appraisals we had have come in EXTREMELY low when they are held up to recent comps of the EXACT SAME model and square foot home ON THE SAME STREET and in the SAME NEIGHBORHOOD. No comps over 6 months old...and in one case, the subject property had been COMPLETELY remodeled and came in at 5k less than it's 4 month old sister-comp directly across the street that had NOT been remodeled.
ISN'T FUDGING THE WRONG WAY TO SAVE THE APPRAISER'S UNCOMFORTABLE SCRUTINY JUST AS DISHONEST AS OVER-VALUATING A PROPERTY? It should be...and perhaps MORE so because everyone is talking about how the former appraisal practices have cost the banks millions of dollars, but the latter practice is costing THE GENERAL PUBLIC and PRIVATE CITIZENS millions of dollars in valuation. Why is this ok? Is anyone else seeing this?