Awful Appraisal Article

[PL1957]

Homebuyers who pay cash win deals as appraisals derail sales in tight Chicago market

http://www.chicagotribune.com/business/ct-appraisals-thwart-homebuying-0707-biz-20170706-story.html

 

[J Grant]

good lord it never stops does it... Appraisers badly need to pool funds and hire our own PR outreach to plant articles in our favor to counteract the onslaught of garbage published.

Truth is a cash dealer can do what they want boo hoo buyers using financing are "losing" the opportunity to over pay for a home....save up cash, buyers, to pay above an appraisal value and you too can be the "winner" and pay the highest price evah...

 

[A K]

"The appraiser wants protection," said Goldberg. "Send a PDF for his file."

That's the only part of the article that I thought was stupid. I don't really know what else is "awful" about it.

 

[Gobears81]

Quite a few anti-appraiser comments in there, but no questioning of actual appraisers by the author. It sounded pretty slanted to me. I'm younger than the average appraiser age quoted in this article, but would be pretty angry if I was 58 years or older since that implies that those guys can't keep up with the changing market trends.

Is the Chicagoland residential market really doing that well?

 

[George Hatch]

So sign in and add a response. The article has been up since yesterday and all of 6 people have commented, most of them about the photo of the house depicted in the article.

Bad deals are made during good times. It is the lenders who decide what they will and won't accept in an appraisal, and the appraisers respond accordingly. If lenders don't want to get out in front of the market then that's on them and the appraiser has little to do with it.

 

[A K]

So sign in and add a response. The article has been up since yesterday and all of 6 people have commented, most of them about the photo of the house depicted in the article.

Bad deals are made during good times. It is the lenders who decide what they will and won't accept in an appraisal, and the appraisers respond accordingly. If lenders don't want to get out in front of the market then that's on them and the appraiser has little to do with it.

What do you mean by the lender decides what they will and won't accept in an appraisal?

 

[Gobears81]

So sign in and add a response. The article has been up since yesterday and all of 6 people have commented, most of them about the photo of the house depicted in the article.

I was actually referring to the comments made by the brokers etc. in the actual article, rather than the comments at the end of the article by readers. One would think that a residential appraiser would be interviewed about problems, or perceived problems, in residential appraising in the Chicagoland area.

 

[Evincere]

What do you mean by the lender decides what they will and won't accept in an appraisal?

https://appraisersforum.com/forums/threads/appraisal-start-program.217233/page-12#post-2777375
Post 119

 

[J Grant]

Slanted opinion pieces are interested in spreading agenda, why would they interview an appraiser /do actual research...the problem now with the internet is the most inane opinion pieces and junk can spread quickly, before it was confined to local now it can go viral/national. Sure we can respond ...if it helps I will do so on weekend.

I 've said it before and I've said it again, we appraisers at some point need to pool resources a $100 a year each ( for example) to fund an online presence website outreach to the public and hire a PR firm that plants media articles about appraising and how it works to counter act the garbage. I am too busy to be the point person on it but would contribute/help out if we can get a core group interested.

 

[A K]

1) We need to figure out a better way to deal with market conditions. 1% per month or whatever is not reflective of market behavior or market reaction. On the way up or on the way down. It is not a easy problem to solve but we must address this issue.

2) Cash offer > offer with financing or appraisal contingencies. That is just fact. It is not different than buyers preferring standard transaction over short sale transactions that require third party approval.

3) No disrespect to our more experienced appraisers but we need to get younger. We need to be more like other professions with typical careers going from 22 to 65. Stakeholders need to help us with that by realizing that we need more money.