Those darn appraisers ... it's all their fault!

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Submitted by AK on June 24, 2009 - 8:21am

OK, I know people who've had legitimate problems with appraisals, so the article isn't entirely without merit. Still, I wonder if the NAR demanded action on inaccurate appraisals back when they promoted spiraling prices and widespread fraud ...

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Faulty home appraisals 'snowballing'

by Jeff Clabaugh Washington Business Journal

Home sellers and real estate agents have a new worst enemy: inaccurate home value appraisals.

Even as prices begin to stabilize and buyers re-enter the market, the appraisals many banks rely on to approve financing are causing some deals to fall apart at the last minute, or forcing sellers to agree to lower prices.

National Association of Realtors chief economist Lawrence Yun said the appraisal problem is serious.

“Lenders are using appraisers who might not be familiar with a neighborhood, or who compare traditional homes with distressed and discounted sales,” he said. “In the past month, stories of appraisal problems have been snowballing from across the country with many contracts falling through at the last moment.” ...

The NAR’s Yun said sees a danger of a delayed housing market recovery and a further rise in foreclosures “if appraisal problems are not quickly corrected.”

http://www.bizjournals.com/southflorida/...

Submitted by jpinpb on June 24, 2009 - 8:34am.

Such BS. Exactly right. NAR had no problems when the appraisals were ridiculously high on the up-cycle.

This is the problem: Most people's income cannot afford them what a house costs. Period. It worked during the up-cycle b/c of all the trick loans and the banks turning a blind eye to income.

Okay. Take what we're talking about on another thread, 1104 Missouri. Say an appraisal comes back and says it's worth 1.5 million, just for fun.

Don't we need someone who has the money, income, credit or cash or financial wherewithal to buy it? Isn't that what it boils down to?

I mean, the up-cycle hot-potato game was all fictitious. The only way we get back to those times again is to play that game over w/the NINAs and everything else that accompanied it, appraisers and whatnot.

Submitted by PadreBrian on June 24, 2009 - 11:08am.

South Florida. :rollingeyes:

The appraisers are just doing their job.

Submitted by aldante on June 24, 2009 - 4:54pm.

PadreBrian wrote:
South Florida. :rollingeyes:

The appraisers are just doing their job.

Now they are? Ok if you say so. I wonder what they were doing during the run up from 2001-2007?

Submitted by ibjames on June 24, 2009 - 6:21pm.

aldante wrote:
PadreBrian wrote:
South Florida. :rollingeyes:

The appraisers are just doing their job.

Now they are? Ok if you say so. I wonder what they were doing during the run up from 2001-2007?

talking to realtors and finding out what the house needs to be appraised at?

now they walk in, no realtors, no nothing, just comps and looking at the house..

is that unfair?

Submitted by 4plexowner on June 25, 2009 - 6:16am.

recent talk of 'bad' appraisals is truly amusing

one of the reasons being given for the 'bad' appraisals is that only local appraisers are familiar with 'special situations' in a local market

yeah, well, BS!!!

appraisals are based on comps whether they are performed by a San Diego appraiser or an appraiser in Alabama

you might argue that 'special situations' like views can only be evaluated by a local appraiser but I would counter that a view is only worth what someone is willing to pay for it - if comps don't support the premium being charged for a view then the difference comes out of the buyer's pocket

~

here's a few articles that might be of interest - not about appraisals - just the market in general

Fannie, Freddie asked to relax condo loan rules
http://www.reuters.com/article/GCA-Housi...
[4plex: the fact that banks are dis-favoring condo loans should tell you something about 'investing' in a condo]

Economy Can Strengthen Only When Housing Prices Do
http://online.wsj.com/article/SB12458709...
[4plex: yep, the economy is screwed as long as real estate values continue to drop - won't change until 2014 or so regardless of the foreclosure moratoria, bank bailouts, etc]

Obama’s Mortgage Refinancing Program May Be Expanded
http://www.bloomberg.com/apps/news?pid=2...
"Fannie Mae and Freddie Mac may get permission to begin refinancing mortgages with loan-to-value ratios above 105 percent as the Obama administration seeks to boost participation in its anti-foreclosure programs. "
[4plex: see my previous comment]

New-Home Sales Stagnant Despite Hopeful Predictions
http://www.washingtonpost.com/wp-dyn/con...
"down 32.8 percent compared with the same period last year"
[4plex: I wonder why none of the polyannas on this forum chose to post this article?]

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