Question Details

Cathy Bureau, Real Estate Pro in San Antonio, TX

Since most buyers use the FHA loan program, the appraisers drive the market. Do you think its time to overhaul the appraisal system?

Asked by Cathy Bureau, San Antonio, TX Mon Apr 2, 2012

I see new homes in older home areas and appraisers use them for comps because of geography. They'll compare a custom to a track just because they are in the same 1 mile radius, if none others are there to compare. They don't incorporate energy savings into a home, which in opinion creates a false home value. Thoughts?

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Right now, all of the above can be done, if there are no other comps, per appraisers long as the appraisers use appropriate adjustments in their calculations. Adjustments are pretty tightly scripted and often are way too far from the buyer's and realtors' perception of value.

I'm troubled by the appraisers being sent to appraise the areas they are not at all familiar with.
Or, by their being afraid to be taken off the banks' lists if they are a tiny bit less than super conservative. This fear and lack of field expertise are pretty dangerous to the market place and are a disservice to the general public.

If it was possible for the appraisers not to be judged on their "performance" (the more conservative the better performing) by their superiors and banks, I believe the appraisers would be more honest in their value opinions.

If it was possible to easy officially re-buttle the appraisal's results by the realtors, it would be great too.

If the appraiser is not from the area, it would be great to have another appraiser (superior) approve the appraisal (so the value is correct).

Yes, I agree with Cathy - the overhaul of the appraisal practices would improve the market further.

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Mon Apr 2, 2012
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