Steve Owen
Elite Member
- Joined
- Jan 16, 2002
- Professional Status
- Certified General Appraiser
- State
- Missouri
Here's the NAHB's take...
http://www.brokeragentnews.com/news/nahb/2006_9/9_29_2006_wf_1159594862.html
As I read this thread, it seems kind of sad that this problem was exacerbated by appraiser's. Yes, it's true that appraisers are in a kind of sticky situation when in a wildly inflating housing market. But, it's also true that appraisers "reaching" to help people make the deal can magnify the effects of market participants utilizing the greater fool theory. A little bit of solid performance by appraisers in the field (including, but not limited to, judicious use of the cost approach) could have helped modify the bubble on the upside and to some extent eased the pain on the downside. And no, I'm not saying we should try to control the market or report other than what we see. What I'm saying is that maybe in our zeal to report the good news of an appreciating market we, as a group, over-reached by not paying attention to some of the economic basics.
http://www.brokeragentnews.com/news/nahb/2006_9/9_29_2006_wf_1159594862.html
As I read this thread, it seems kind of sad that this problem was exacerbated by appraiser's. Yes, it's true that appraisers are in a kind of sticky situation when in a wildly inflating housing market. But, it's also true that appraisers "reaching" to help people make the deal can magnify the effects of market participants utilizing the greater fool theory. A little bit of solid performance by appraisers in the field (including, but not limited to, judicious use of the cost approach) could have helped modify the bubble on the upside and to some extent eased the pain on the downside. And no, I'm not saying we should try to control the market or report other than what we see. What I'm saying is that maybe in our zeal to report the good news of an appreciating market we, as a group, over-reached by not paying attention to some of the economic basics.