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Not Everyone Is Ready For An Appraisal Of Reality

As comedian Robin Williams once said:

Reality, what a concept

Kenneth Harney writes that Appraisers supply a dose of reality [LA Times] [1].

What will your home be worth if unsold inventories of houses turn into a glut and relistings with price reductions become routine?

For most consumers, the ultimate answer about value will come from the appraiser hired by the purchaser’s mortgage lender.

For consumers, he provided insight about appraisers from several appraisers he interviewed (sans moi!):

Conclusion — Take a deep breath and listen to the valuation expert if you want to know what a property is worth.

I look at a valuation expert as:

In the article Bogus appraisals stress housing market [Kansas City Star] [2] the author states An independent and unbiased appraisal — once considered the bedrock of any home sale or loan — today is often built on shifting sands, according to concerned appraisers in Kansas and Missouri as well as nationwide.

Appraisal fraud is relatively easy to hide because most consumers have no idea how an appraisal works. Many consumers never see an appraisal — though they pay for them — unless they ask for one at closing. But while they may appear subjective, honest appraisals are supposed to adhere to well-defined principles.

As the housing market eases, the phrase rising waters float all boats won’t apply anymore as consumers, lenders and regulators will begin to get the message that something has to be done.

For more information on appraisal issues of the day, check out our blog [Soapbox] [3], dedicated to appraisal issues of the day.