The End Of Appraisers!

[The Argus]

Economists are errily similar to weathermen. Rarely is there a penalty for an inaccurate forecast.

 

[Calvin the Airedale]

Economists (and appraisers) are errily similar to weathermen. Rarely is there a penalty for an inaccurate forecast.

Appraisers are economists. Ones that are narrowly focused on one or several types of economic issues, i.e. values.

 

[residentialguy]

THE FUTURE APPRASIER BY JOHN FR

 

[Offshore]

Calvin and Greenback made some excellent points. This is a good thread.

 

[Calvin the Airedale]

The theme of all such threads: "When in danger, when in doubt, run in circles, scream and shout!"

 

[PL1957]

This is one of those "sky is falling" threads. I've never seen more of them on AF since when I first joined than over the past month.

I am encouraged by their number. It's probably a sign that the market has bottomed out and is beginning to turn. When all of the prognosticators are in full agreement on a trend, it usually means it's over.

 

[Calvin the Airedale]

I am encouraged by their number. It's probably a sign that the market has bottomed out and is beginning to turn. When all of the prognosticators are in full agreement on a trend, it usually means it's over.

So you're thinking that it's a trailing indicator? I hope you're right. This "sky is falling" stuff is getting old.

 

[Mr Rex]

 

[PL1957]

So you're thinking that it's a trailing indicator? I hope you're right. This "sky is falling" stuff is getting old.

There are a lot of "green shoots" that may turn out not to be weeds. I don't know about the resi side of the business, but on my side, there's optimism. I even have my Cleveland office up and running ...

 

[Howard Bouchard]

Right now many (Lenders, Realtors, Homeowners, Ben Bernake) have discounted residential appraisal or at least set it aside in the name of effecting a recovery in the real estate markets. For the most part the only one buying mortgages is the Federal Govt or by extension the taxpayer. The FED chairman and others are hoping that we see light at the end of this very dark tunnel before market forces cause interest rates to spike higher, thus making the costs of purchasing these mortgage originations too high for government to keep pace with.
By then it is hoped a recovery will have occured and investors will once more be in the market purchasing mortgage backed securities. In the meantime and in regards to most workouts, shortsales, foreclosures or other lending transactions; a full appraisal is thought to only contribute to the cost to the consumer for credit and other less expensive valuations are good enough said current circumstances.
Oftentimes it is forgotten why we needed something in the first place. Things run through cycles and the why is rediscovered at some future date and acted upon as though it is the leading edge thinking of the day. I suspect, if and when real estate recovers to the extent investors are once again interested in purchasing mortgage backs, investors will require detailed and well documented full appraisal services for most transactions.
Will the industry look different? Yes.