This entry was posted on Monday, August 27th, 2007 at 1:39 pm and is filed under Appraisals, Changing Guidelines. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
“CHECK YOUR APPRAISAL” Post Starts a Great Discussion Over on Active Rain
I posted my Friday article about appraisals and “declining markets” over on Active Rain. It was popular enough to achieve “featured post” status and a good discussion ensued. To read those comments click the Active Rain link.
August 27th, 2007 at 5:18 pm
Guess what? I have a deal stalled because of a box that was checked saying the property is in a declining market.
Thought you would be interested.
August 28th, 2007 at 5:44 pm
Good post and thanks for the warning. I’ve started calling my wholesalers to see what’s coming around the bend.
September 12th, 2007 at 1:47 pm
Guess what,
It is true that appraisers must state whats currently happening in the market as of the effective date of the subject appraisal. It is true in Northern California at least that the market is in a ‘contracting’ state still. Sorry thats just the truth. Everyone has to deal with it as it is on some level. Most appraisers will not ‘misrepresent’ a truth such as that to lose a license no matter how much a real estate person/loan originator will pay them.
September 12th, 2007 at 3:37 pm
Chris, keep me posted on the outcome of that deal would you?
Andrew, lenders are taking various positions with this right now. Worst case: 5% reduction in LTV. Best case: additional comps and an explanation from the appraiser (=delay in closing).
Vikki, Amen. I have always believed that we should deal with value straight up. There has been a lot of arm twisting by bad lenders on appraisers, such that appraisers have approach me for business suggesting that one of benefits they could offer is the ability to get whatever value I need. I don’t need or want that kind of help. It is what it is. You appraisers have careers and reputations that shouldn’t be compromised by this lapse in ethics. Appraise on!