Here We Go Again

[BarbaraNJ]

Inflated Home Appraisals Drain Billions From Government Insurance Fund

I copied the above headline from the Wall Street Journal. I'm not a subscriber, so I couldn't read the entire article, only the first paragraph. Seems it is blaming "inflated appraisals". I can't help but wonder once the government goes completely over to automated appraisals who the heck will be left to blame ??

 

[form1025]

CU equates to PU

 

[Terrel L. Shields]

See other thread on subject

 

[BarbaraNJ]

See other thread on subject

Terrel, what is the subject line of the thread ?

 

[Deleted member 150397]

We all know sales price confirmation is rampant...this should be no surprise and more reason to keep uneducated form fillers out of the appraisal world.

 

[ucbruin]

I'm curious how many appraisers have employed upward time adjustments in the past couple of years...

 

[Carnivore]

I'm curious how many appraisers have employed upward time adjustments in the past couple of years...

I would hope all of them would if they are in an DOCUMENTED appreciating market.

Now if your saying how many are reconciling to the upward end of the adjusted Sales comparison results of each comparable, then I agree I hope they are not. Since it would be a double dip kind of thing if they already adjusted for time for each comparable

 

[ucbruin]

I would hope all of them would if they are in an DOCUMENTED appreciating market.

With that said....
How could "here we go again" be prevented????

 

[Carnivore]

With that said....
How could "here we go again" be prevented????

Well this has had me confused about my market. Where was this demand coming from. If it was local then my apartment vacancy rates should have risen, but they didn't they were at 100% occupancy. I did know that people were moving here from other parts of the country. OK, that would make sense., but some areas should have been declining or flat. They were not as far as I know from post on this forum. So I did not see our nationwide population increasing at a large rate. That would answer for the higher demand. Since it was not increasing quickly then what could be causing the demand? I think I partly know the answer. Millennial(Gen Z) were moving out of their parents basements! Interest rates were low, they were sick of seeing their parents everyday and ragging them and BOOM! Here they come.

Anybody have a better idea of where the demand came from. FTR My market is still appreciating but at a much slower rate.

 

[Deleted member 150397]

A competent appraiser should employ known methods to analyze the market.... I have not seen this in most of the appraisals I have laid eyes on. Moreover I see contrived sales grids and a "backed in" cost approach. Additionally and maybe more important I have read comments on this site that essentially indicate that "coming in low" can be detrimental to an appraiser's career and potential for future work. The combination of a lack of competence or effort in analyzing the market with pressure from market participants, I feel creates an environment for "form filling". Contrived reports that hit a preconceived number and ultimately dilute the appraisal process to a lengthy report based on participant desires/needs. Sales price confirmation is one thing and arguably brought on by the contract review requirements but I have heard a lender say, "I want an appraisal to come in high so I can decide how much to loan". It's a lose lose situation IMO for the lowly appraiser.