Market Conditions in Curtis>Question Details

Boerigter5093, Home Buyer in Curtis, MI

is it possible that a single appraiser can stagnate the real estate market - to the point of undermining the sales of numerous properties?

Asked by Boerigter5093, Curtis, MI Sun Mar 3, 2013

a number of low-ball appraisals have been coming in from a single appraiser. the area is served by one appraiser that is used by 3 lenders - the only lenders in several county area (in the u.p. of mi) it is killing the market - what can be done?

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I agree with Tim that as soon as lawyers and politicians stuck their noses into things (under the disguise of "protecting the consumer") that it became much more difficult. Lenders developed working relationships with appraisers who were fair in their opinions, reasonably priced, and got the job done promptly. Of course there were shady characters out there who took bribes and inflated values. Those few bad apples ruined things for everyone.

At some point it became a bad thing for realtors, lenders, appraisers, etc to work as a team. I personally don't get it. Making money is not a bad thing so long as you're not taking advantage of people.

Now lenders have to randomly assign appraisals to a pool of approved appraisers and what you get sometimes is someone who is less experienced in that given area. A generalist as opposed to a specialist.

In terms of the low-ball appraisal, is there hard sales data to support the values of your purchase contracts or does it heavily rely on adjustments and out of area or out of date comps?? If there is hard data and the appraiser chooses to ignore it then you have a real problem. Good luck appealing an individual appraisal. In my experience it is often fruitless and you need to have an iron-clad case with several better comps in order to have any shot.

If this is a frequent problem then I would get together with your broker, fellow realtors, and/or the local board of realtors and approach the lenders about improving the appraisal process and potentially eliminating this appraiser. Provide as many examples as you can. Complaints from one agent is going to sound like sour grapes, but banding together as a collective could get your voice heard.

Best of luck!
0 votes Thank Flag Link Tue Mar 5, 2013
I agree with the others that this can happen, especially in an area that is predominantly served by one appraiser. I sell real estate in the Eastern Upper Peninsula and we are struggling with long appraisal time and the availability of appraisers. Not all appraisers are able to do FHA and VA appraisals and I have had some come from Gaylord and even Traverse City who really didn't understand the market and comps as well. Some appraisals have even killed deals and you can't always go with another appraisal or lender since FHA appraisals run with the property and not with that specific mortgage. We have some good appraisers and it may be you have to go outside your area which would increase the turn around time and maybe even cost a little more. Let me know if there is any way I can be of further assistance.
Linda Sayles
Coldwell Banker Schmidt
St. Ignace, MI
0 votes Thank Flag Link Sun Mar 3, 2013
There are rogue appraisers, rogue inspectors, rogue agents and rogue buyer.
Anything can and does happen.

It happens here in FL and here is what I have done.

In your situation:
1. Have an appraisal competed paid for by the seller.
2. Prepare area comps to support this appraisal from the MLS and public records
(Support the value using more than one method)
3. Advise the buyer of the value.
4. Advise the buyer of the likely 'bank appraisal' situation
5. Buyer must be prepared to change lender or make up the difference.
6. (optional) Do not allow the identified appraiser access to the (any) home.
7. Not recommended - follow formal challenge to the appraised value.

Best of success to you.
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, Fl

Scotsdale Home Tour:
0 votes Thank Flag Link Sun Mar 3, 2013
Is it possible? Yes, anything is possible. I ran into a situation like this many many years ago when an appraiser would use only county records and not go into the MLS system where there were hundreds of comps to choose from and instead picked some from a limited database of homes not sold by Realtors. He caused a mess and back then the lenders could select an appraiser and if we heard it was being assigned to that guy we would pull the loan and have it resubmitted a day or two later to get a new appraiser assigned. Life was so much easier back then - we all worked for the seller and thing went smoothly until things changed and lawyers took over.
0 votes Thank Flag Link Sun Mar 3, 2013
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