Ron really pulled the curtain back on the appraisal process. It is ALL about protecting the lender to enable THEM to resell the mortgage to an investment group. The idea it has anything to do with the value (price an able and willing buyer and seller agree upon) is a smoke screen.
Each bank imposes a unique set of guidelines on the appraisal in regards to what can be considered as comparables. This 'unique' set of guidelines allow them to conform the loan to the requirements of the orgainzation to whom they intend to sell the mortgage.
Too often this results in FIAT appraisals!
NO, consumers are not totally at the mercy of the lenders and the 'fix' the lenders have inserted into the system.
However, the path to success is through the close cooperation of professionals in the real estate and mortgage business who construct the transaction in anticipation of the obstacles that are easily predictiable. FIAT appraisals are one of the easily predictable obstacles.
Prevailing over this expectated abborition requires the buyer and seller to have their feet firmly planted on the ground of reality and with the agility to circumvent the banks intended sabatage.
Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL