Declining Market = Do Not Use?

[Michael Tipton]

I'm not "smart 'nough" to know if I'm being blacklisted.

I've been checking the declining box for over a year. The market is what it is and sales are down significantly since '06 per MLS data.

 

[Karl]

Unfortunately we for some reason have to teach lenders they don't seem to read or care to read letters. And yes it is declining in certain neighborhoods & certain style, age of homes. IF your a honest Appraiser look forward to a lot of vacation time in next few years. OR at least until these $99 Investor Guru's stop buying the "PreForeclosure homes". Cause they KNOW more than the other $99 Investor thats losing the home.

There are lenders (& Investigators) out there that want the truth, (far & few between) but they"re out there. them & those that stay honest will make it IF they can survive during this "Dead Head" weed out time.

 

[T.E. Faravelli]

I spoke with a group of appraisers on Friday and the consensus was they are extremely hesitant/reluctant to indicate a declining market. Why? Several who have were placed on do not use lists by their former clients some who are AMCs. As a sidebar, they also said the pressure for hitting a predetermined value as never been greater and that "comp checks" are expected as a normal course of business and that failure to accommodate would result in immediate loss of that client. It's business as usual.

 

[Deuce of Spades]

I suspect that I am no longer receiving orders from one client. I marked declining and over supply on pg 1, noted on pg 2 that there was not an oversupply specific to the subject's comparables and came in over the contract. Received calls from the lender, realtor and borrower all upset. I explained again the market situation (as noted on the addenda) and that it is the lender's business decision to lend or not. They did not lend and I have not seen any more work from them.

 

[T.E. Faravelli]

I explained again the market situation (as noted on the addenda) and that it is the lender's business decision to lend or not. They did not lend and I have not seen any more work from them.

The truth shall indeed set you free- free of your client base. Virtually every appraiser I know that has indicated a declining market - has lost - or is going to lose - clients. V.I. Lenin said it best "every cause needs its useful idiots."

In the appraisal profession they found gold DOS, gold!

 

[bill lewis]

Have marked declining market on some reports and I know I have lost some clients because of it. I think it's pretty common knowledge (in the news everyday!!) that most of the housing market is declining, but have the appraiser state that in the appraisal report and watch the loan officer yell and scream for killing his/her deal...

 

[Mister Ed]

In my area, we only have one declining market... spec houses! Builders started building them 5 years ago when there was good demand for new houses and a few new subdivisions. In the last 12 months, spec house movement has all but dried up. In speaking to 10 of the largest contractors in the area, no spec houses are built--only contract houses.

Builders admit to cutting prices on spec houses by more than 20% if they have been sitting 9+ months. MLS verifies their stories as many of the spec houses are on the MLS. If I thought I could resale my house in a timely manner, I would contract a spec house.

This has not happened yet, but I imagine that we will soon see it start affecting the larger market as people try to sell their houses that have been around a few years.

 

[lrb50]

Same 'ol Same 'ol

Ah yes, it's the old lender pressure again. Everyone agrees that it is the lender's decision to loan or not after examining an appraisal. The REAL question is, How much more control are we willing to let the lending community exert over us as appraisers? Heck, if you ever checked the declining market box or listed the condition as poor you know you won't see any more orders from that client. Do you think the lending community views AMCs as better control points over independent appraisers? After all I've had the reviewer at an AMC call me to correct both of these conditions on appraisals in the past.

 

[MARK JOLLIFF]

I had 3 pre forclosure 2055"s (old form) 5 weeks ago for my only remaining client. All 3 were oversupply and declining. No work since.

 

[T.E. Faravelli]

No work since.

A badge of honor and integrity. Unfortunately, that doesn't pay the bills. I know of at least ten appraisers who have experienced this. Management runs roughshod over the appraiser because they can. Individually the appraiser is weak and insignificant. Collectively and together were could be strong and control our destiny. They couldn't treat appraisers this way if we had a collective bargaining agreement. Just ask my brothers at the IBT.