What do you think: Are weak appraisals undermining your home sales & our housing recovery? http://tinyurl.com/3cc396w

Asked by Alex Hayes, Seattle, WA Fri Aug 12, 2011

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Clark Riel, Agent, Reno, NV
Fri Aug 12, 2011
I only need to look around my own neighborhood to see that it is not the appraisals, it is the number of bank sales and short sales that is not helping any recovery. Until that market drys up we are not going anywhere. Appraisers can only do what they can and work with that which has sold. Everyone was blaming the appraisers or over valuation when this whole mess exploded, I don't think we need place any balm on them for what is now happening. Don't shot the messenger. They are not and never have been the cause of this mess.
2 votes
Kary Krismer, Agent, Renton, WA
Fri Aug 12, 2011
I've not seen any evidence of that at all. NAR recently had a survey that indicated only about 15% of Realtors had a transaction fail in the past year due to a low appraisal. Given that Realtors typically handle several transactions a year, minimum, that is not a very large percentage of transactions affected.
1 vote
Tonya Brobeck, , Everett, WA
Fri Aug 12, 2011
I don't know that I would point fingers either, just challenge the appraisal. i myself prefer to talk with the appraiser first and give them my comps prior to them going out to my listing. Seems to have worked well for me
1 vote
Jirius Isaac, Agent, Kenmore, WA
Fri Aug 12, 2011
I think what is undermining our housing recovery is lack of consumer confidence & the number of people losing their homes. Unless we stop getting all these people out of their upside down homes, there will be no recovery.
1 vote
Jean Bradford, Agent, Silverdale, WA
Fri Aug 12, 2011
Hi, Alex,

Over here in Kitsap, it seems as though our weak "Assessor Valuations" are causing buyers to offer lower, in the first place. Appraisals are fine, but buyers are doing vast amounts of research on-line and using the lowest excuses they can find. Our assessor just slashed another $30,000 off of Central Kitsap home values in one fell swoop! No examination of the homes, at all.
1 vote
Ron Thomas, Agent, Fresno, CA
Thu Aug 18, 2011
it seems like, so far;
7 NO
and 3 neutral.

I think most people will vote NO becaise we do not want to repeat what we are going thru.
0 votes
The Cascade…, Agent, Issaquah, WA
Thu Aug 18, 2011
No.... The appraisers need to be realistic. The bottom just isn't here yet. While are select areas with bidding wars and growth, that's the exception. As a whole; King County prices are down 13% year to year and there are a ton of Short Sales and Foreclosures still coming..... If they would dump all the bank and SS inventory prices would really crash for 6 months.... BUT: then we would have a true bottom and could slowly start adjusting and climbing out. The way things are going we still have years of this ahead of us.
0 votes
Ardell Della…, Agent, Kirkland, WA
Sat Aug 13, 2011
I never interact with appraisers. Never have...never will. Let them do their job. I have never had a problem with an appraisal yet in 21 years. I'm a little afraid to say that though...because there's always a first time and I have a VA appraisal coming up :)

I hear this complaint a lot on the internet...but I've never seen a real life example in 20 years that didn't make sense. Saw one first hand that another agent brought to me. It sold too high. It wasn't the appraiser's fault. The buyer had to pay the difference in appraised value and sale price in cash. The seller came down a little and the buyer went up a little with cash. It worked out. The appraisal was not changed to accommodate the sale.

It's not an appraiser's job to appraise it for whatever a buyer is willing to pay for it. We see first hand the devastation that kind of activity can cause. For a house to sell for over appraised value takes cash...to make up the difference. The appraised value controls what can be financed, not what a buyer is willing to pay. If the buyer is 20% down and it doesn't appraise...maybe that same money becomes 15% down. That's how it is supposed to work.

Appreciation is not funded by banks with the sky's the limit. Appreciation is funded with a buyers cash making up the difference. That has been historically true until recent history, and appraisers appraising at whatever a buyer is willing to pay, is not good for the economy long term. We should know that now, if we didn't already know it before.
0 votes
Aaron Byrd, Agent, Kent, WA
Fri Aug 12, 2011
I'm and apprasier and broker. Really it's not the appraiser most of the time that's the problem. The lender's have greatly increased the requirements we have to meet in each appraisal and it can make it difficult sometimes to give a value even when we believe in it. We also get paid half what we used to and are pressured to do it in half the time. It's like getting 1.5% on a transaction and having to do everything in 10 days....on every transaction.

Encourage the lender's you work with to use Allegiant AMC (253.838.3542) or First Choice Appraisal Managent. These are owned and operated by appraisers and know how to treat the appraiser with respect and how to handle the difficult situations that arise in this market...tell them I sent you.
0 votes
HLR, , Oregon
Fri Aug 12, 2011
We don't set the values the markets do, if you can prove that the wrong comparables were used, then fight it, it's just as weak for agents to blame appraisers if you don't fight it. But it's not the pressure to low ball values, it's pressure to turn appraisals around in un reasonable turn times that is causing some of the problem, the lenders can not pressure us to low ball, anymore than can an agent, borrower, home owner, or loan reps can push us to raise value with the new rules. But the back lash of that, is now it's the pressure to turn around an appraisal that is causing unsupported reports. Some AMC's are using the fastest and cheapest appraisers so the AMC's can put more of the fee the borrower pays them up front, and we the appraisers have to wait 30 to 90 days for a much cheaper fees. So Professionals, fight back, if you think a value is low. We are all in this.

HLR, appraiser that has worked the Puget Sound area too for 15 years, just moved back to Oregon some years ago.

Best to you all
0 votes
Joseph Runfo…, Agent, Staten Island, NY
Fri Aug 12, 2011
Yes!, I believe lenders are pressuring appraiser's to come in with lower estimates. Instead of hiring established, and known appraisers with proven records banks seem to be outsourcing to appraisal management firms which are associated with other banks. It seems these management companies pay less resulting in appraisers that work cheap, but have less experience and familiarity with the areas they are assigned, and that results in inaccurate appraisals.
Web Reference:  http://www.clovelake.com
0 votes
Scott Kilpat…, Agent, Leawood, KS
Fri Aug 12, 2011
What came first chicken or egg.
Short Sales, Forecloser, or weak appraisals.
0 votes
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