Read your own posts on this thread and see what they sound like. You are attacking an appraiser (me), for being diligent and describing market conditions accurately or adjusting for undue stimulus when warranted back in the bubble? Frightening that you are in the position you hold.
Again with the lies and misrepresentations about my position. I have never once stated that an appraiser should not be diligent and describe the market conditions accurately nor have I ever stated that an appraiser should not adjust for undue stimulus when warranted. What I have disagreed with is your statements that all properties were overvalued during the bubble and with your statements about what constitutes undue stimulus.
If you can provide intelligent and credible answers to all of the following questions, then I will be glad to reconsider my view on the matter:
1). In what year exactly did you determine that nearly all properties were overvalued in your markets? In some of the areas in which I appraised there was 10-25% appreciation every year from the end of 2001 right up until 2007.
2) Did you determine that virtually all properties were overvalued right when it all began in 2001 or 2002 (when the bubble just started to inflate), or did you make that determination in 2004 or 2005 (before prices appreciated another 50% or so before the 2007 implosion) or did you make that determination in 2006 or 2007 right before the bubble popped and what support did you have for your conclusion if there was an active market with numerous willing buyers paying these prices who surely must have been aware of the rapid appreciation?
3). How did you know that the high rates of appreciation were not a replay of the period from in the 1970's when house prices in the US in creased by 267% in ten years (From a median price of $23,600 in January, 1970 to $62,900 in Jan., 1980) which did not result in an implosion? (Many of us realized that there was a bubble that was likely unsustainable, however virtually non one knew exactly how long the bubble would continue to inflate before it finally popped and no one knew how much it would deflate when it did pop (nobody knew for sure whether the bubble popping would cause the market to give up 100% (or more) of its gains since 2002, 75% of the gains, 50% of the gains, 25% of the gains, 10% of the gains, etc)
4) In 2006 and early 2007 right before the bubble burst did you adjust
every comparable sale in
every appraisal due to "undue stimulus" or "not prudent buyer behavior) since by that time over 50% of mortgage originations were Alt-A/subprime loans and there had already been 4 - 5+ years of very large increases in sale prices/property values?
5) By what objective standard did you judge buyer behavior not to be prudent during the bubble and how did you determined the amount of the adjustment for "imprudent buyer behavior"? Was the buyer who bought a property in 2004 or 2005 using a 100% LTV interest only loan when markets were appreciating at 25% or greater per year in many areas imprudent when that buyer flipped the property 12 months later at a very substantial profit? Or was a similar buyer only imprudent when he made a similar transaction in 2006 and did not flip the property in time before the bubble burst in 2007?
