When appraisals defy explanation
Letter to the Editor
By Inman News, Friday, August 14, 2009.Re: 'The numbers game in real estate values' (Aug. 13)
Dear Editor:
Getting appraisals for properties continues to be an exhausting process that neither the buyer nor the seller can be adequately prepared for (though I continue to try).
A recent example was a property that is tucked away in a lovely but tiny little subdivision isolated from the surrounding homes. This subdivision has one or two sales per year, with homes ranging in size from 1,500 square feet to 8,000 square feet.
The lending company wanted three comparables within a mile. The deal fell apart and the next buyers (much to my seller's delight) offered them $5,000 more, and our local appraiser had no problems with the value. Knowing when to prepare your client for this "numbers game" is difficult, as the explanations will more than likely confuse them if given in cases where we don't have problems.
Chris Tesch
Realtor
RE/MAX Bryan-College Station
College Station, Texas
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Submitted by Christine Donovan - Costa Mesa Real Estate on August 14, 2009 - 1:42pm.
Appraisals are difficult right now, and it doesn't seem that the new rules have accomplished what the government was hoping they would.
I think they need to rethink them and making sure they will truly accomplish the changes they are intended to make.
www.livingcostamesa.com
www.donovanblatt.com
Submitted by Barry Noble on August 17, 2009 - 8:35am.
Local appraisers, local experience of specialty markets equals accurate and fast appraisals.
HVCC AMCs hire the cheapest from "wherever" to do the work.
Even the so called appraiser or certified appraiser referral sites are a joke. I've been innundated with "Pay to get on our list for local work referrals". You check these sites out and of some 20 appraisers recommended for my specific zip code, you will be lucky to find one appraiser closer than 75 miles, because the appraisers are so desperate for work now, they add every city in the whole southern california area to their websites....so even appraisers in Santa Barbara are listed as a local appraiser for Palm Springs Ca. Look at the map to see that distance...........
As the Market returns, and it is in some areas and is about to in others, this crass mistake - the HVCC regulations - will so clog the buying process - the usual will happen, but in a bigger way - "When something goes wrong - Blame the Appraiser!" At this time it is "Blame the HVCC and the Appraisal Management Companies in the middle" - who use the cheapest and often inexperienced appraisers from way out of town, then add on a high intermediary fee for the AMCs and make the buyer pay 50% more for poor to poorest service, so the AMCs can thrive.
Barry Noble www.MyPropertyIsWorth.com
Submitted by J. T. on August 24, 2009 - 10:01am.
Hello Barry.
Precisely why I have not and will not work with any AMC regardless of the market circumstances. I see from your web site you have 20 years & I can just say congratulations. You cam in at the beginning of the last debacle & here we are again. Things were very different 35 years ago but when the same "individuals" escaped penalties for the S&L problem and became Mortgage Bankers this day was cast in stone. It would come we just didn't know when. Now it is here and, again, they seem to be skating free. Fortunately or unfortunately, at my age, I will likely no longer be here to see the next one. I understand the young entrees into the field not understanding the damage they are doing to the profession by working for those groups but they should be doing something else to make their way until this settles out. If nobody would work with them the AMC's would die under their own weight leaving Fannie & company to find another dog to flog. The numbers of active appraisers are falling in all areas so, maybe, when the market does turn, and it will, it will be our day to make back some of what we have lost.
BTW over the years I have covered from Santa Barbara to South San Diego to the desert, Palm Springs included, etc. but then I have also been watching the markets in these areas for over 30 years as well. Observing the changes in the attitudes of Buyers & Sellers, etc. If we pay attention to the fundamentals of appraising very few markets result in a true challenge. The problem is they don't seem to teach the fundamentals in anything any more. Today to much time is spent meeting the governments check boxes to meet the underwriters guidelines and not enough doing the true work of appraising.
A fellow can dream can't he.
James SoCal
Belmont Shore, CA