Thanks everyone for your expertise. I got the results back yesterday afternoon, and the property appraised at exactly our purchase price. One less thing to worry about!

Appreciate your feedback!

Bill- Normally not an issue from what we have seen...some bank appraisers are tougher than others.

Worst case scenario...
If the value comes in less than the purchase price you have the option of renegotiating the transaction.

You're an educated consumer, you shopped around, you are aware of local values...
Think positively!

Good luck!

Sorry Bill, I am not from Bergen County.. I hope you get a more direct answer to the area.

And sure, you are entitled to walk on an apprasial. This is a common clause and I would also have it in the contract with any buyer. The other side of what is happening now in contracts because of the apprasial problem is that people are trying to have the contract bound regardless of the appraisal.

So, Bill hold your breath and see what happens. As noted here by an appraiser, it is a willy nilly process that could just be done correctly by an educated appraiser or someone that is making an assumption on the side of caution with no real idea of what is going on.

Ladies and Gents,

I appreciate all the info and articles. I am really interested in a straight answer to the question from local Bergen County folks: Are there lots of issues in towns like Ramsey at the moment?

FWIW, I would -never- pay more than what was appraised. In fact, I would use the out clause and attempt to renegotiate or simply walk away. So the answer on how badly I want the house doesn't matter. I don't want it so badly that I'll overpay...

Here are some recent news articles ect. on the topic.
http://online.wsj.com/article/BT-CO-20090623-709692.html

http://www.mercurynews.com/realestatenews/ci_12681303

http://www.bloomberg.com/apps/news?pid=20601087&sid=aWyC…

http://www.mortgagenewsdaily.com/06232009_existing_home_sales.asp

Are the properties being appraised incorrectly as NAR puts forward or are we just not happy that prices are still declining according to the appraisals being done?
If appraisers were causing prices to climb would we still be hearing from anyone about incompetent appraisers or would they now be experts that know what they are talking about?

Laying the still declining prices or people not getting loans on the appraisers shoulders seems a lot like laying the housing bubble on the shoulders of mortgage brokers and Realtors. I thinking most would consider that to be untrue and unfair claims about their industry?

Maybe there are a whole lot of reasons things are so messed up, maybe a few reasons contributed by every industry?

Ah John, you just love making inflammatory remarks.

Being liable is not equal to playing it safe. Again, do not blame the messenger for the fact that more and more markets out there are becoming REO and short sale driven. If that is the case, we have to report it, and values will take a hit as they are indeed doing across NJ. We're just reporting, not making it up. Appraisers work for the bank and look out for the bank's interests during the valuation process. Pointing out market risk is therefore part of doing our job correctly.

Another great item of interest.....no matter how local, qualified and knowledgeable you may proclaim to be, there's always more to learn. So, while I pick up my certified check or cash for the appraisal inspection, I do expect the realtor or owner to be there or be available to me for questions. If I don't get answers, assumptions will be written in the report and these invariably err on the side of caution. Really a no-brainer in that respect. So if the realtor is interested in actually making it to the closing, why not interact with the other actors in the transaction?

Keep up your spiel, John. I won't hold your hand, but it makes for more interesting discussions on Trulia

Jack

Jack wrote: "Mortgage bankers and realtors can push their value all they want, but they're not held liable. If the problem is missed renovations/additions; any realtor worth their commission should be at the appraisal inspection to help provide valuable background information on the property."

So, I guess that "being liable"in doing your job correctly is an excuse for playing it safe?
For appraisers that come from 50 miles from an area and with no knowledge of the area, comps, property values and such... it is a safe bet to appraise something low and run away after getting paid.. and then you expect the Realtor to be there and hold your hand during the process?

Any Appraiser worth their 400 per appraisal should be qualified and knowledgeable.

A moment ago - Delete this answer

John,

Don't blame the HVCC. The problem is a well-known one and blaming appraisers is similar to shooting the messenger. The banks severely tightened underwriting rules in response to market conditions. Appraisers just have to follow the new and tightened guidelines. Remember, when it comes to who can actually be held liable in the valuation process, it's only the appraiser and the underwriter. Mortgage bankers and realtors can push their value all they want, but they're not held liable. If the problem is missed renovations/additions; any realtor worth their commission should be at the appraisal inspection to help provide valuable background information on the property.

As far as incompetence is concerned, I see equal amounts of that spread out across the universe, not just the appraiser world. So feel free to call me if you want a professional handle the valuation.

Sincerely,

Jacobus "Jack" Vollenberg
RE Appraiser - Vollenberg Appraisers
Asset Manager - ERA Statewide Realty
Vollenberg@iname.com
Cell (973) 590-0142

We have not had too many appraisal issues recently. The homes that are selling tend to have sellers who are realistic about their price, and those are the homes the buyers are gravitating towards. The result is that the buyers are paying what the home is worth in today's market.

Karen Lampiasi
Manager/Broker
Coldwell Banker, Mahwah

Hi Bill,

Appraisals in general are not what they used to be, but as I have been stating I am seeing more and more unqualified people doing appraisals everyday. I guess it is like anything else there is good and bad, but the
new system of using appraisers due to line up.. you never know what you area going to get.

See this atrticle By: Diana Olick, CNBC Real Estate Reporter :

http://www.cnbc.com/id/31509964

The picture becomes clearer.

Hi Bill,

It depends on how badly you wanted your house. If you're willing to pay what the market at the moment is willing to pay for it, then the appraisal typically will come in right on the money. If you overpaid because of whatever (personal) reasons, it will come in low. If you underpaid and are getting a great deal because of seller constraints/reasons, then the appraisal may come in over.

In short, trust the market. I'm always amazed at how efficient the entire sales process is when you're really doing your homework.

Sincerely,

Jacobus "Jack" Vollenberg
RE Appraiser - Vollenberg Appraisers
Asset Manager - ERA Statewide Realty
Vollenberg@iname.com
Cell (973) 590-0142