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Nar Hatin' Appraisers Again

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Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
I think Yun did a good job on describing the market. Then he goes for the fake news of an appraiser shortage.


"Among contracts that had a delayed settlement (23 percent), 30 percent faced issues related to obtainingfinancingand 21 percent had appraisal issues.
While they are still the top cause of delay, issues related to obtaining financing have been
cited by fewerrespondents than when NAR first tracked this indicator. Fortypercent of those reporting a delay cited a
financing issue. The decline mayreflect the improvement in the economic environment, better credit
histories from borrowers, and improvement in theloan evaluation processes of mortgage originators.

Regarding appraisal issues, respondents reported facing appraisal delays due to a shortage
of appraisers,valuations that are not in line with market conditions, and “out-of -town” appraisers who are not familiar
with local conditions.InNAR’s Survey of Mortgage Originators, 55 percent who took part in the surveyreported some level of issues getting appraisals."

Problems.JPG

The report basically says there is a shortage of listings. Why is that? Well, when you crashed the market in 2006 you delayed the construction of housing for about 8 years. Not the appraisers fault. I've run into a fair share of incompetent realtors, they probably explain the "Other 30%." We appraisers are only 11% of the problem and that is probably way over exaggerated. And AMCs hire out of area appraisers and they know it.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Funny they didn't find home inspectors to be an issue.

Maybe there are so many of them, they are too confident in killing deals.

Or,
Maybe appraisers had issues with the condition, before the inspector even got there?

:rof:

Kool aid to support AMC whine.

.
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
Funny they didn't find home inspectors to be an issue.
Huh?
Look at the chart in the linked report again more carefully. Hmmm, what is the leading cause for settlement delays in Q1-2017 per the Realtors' survey again?
upload_2017-5-4_14-18-34.png
 

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Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
The shortage relates to buying by hedge funds bent on cornering the market. Monopoly at its worst.
 

Amy Perkins

Senior Member
Joined
Jul 20, 2003
Professional Status
Certified Residential Appraiser
State
Tennessee
"Regarding appraisal issues, respondents reported facing appraisal delays due to a shortage of appraisers, valuations that are not in line with market conditions, and “out-of-town” appraisers who are not familiar with local conditions." ... I wonder why there could be a perceived shortage of appraisers and out of town appraisers? Is it because the local appraiser charges too much for the AMC to make a huge profit and the out of town ones doing a high volume don't have time to get to them fast enough so they lower the value to lower their liability? When are they going to learn? Don't bite the hand that feeds you and don't feed the hand that bites you. I see it all day long, cut values due to sheer quick and dirty appraising. They don't have time to be accurate, so they do nominal adjustments and provide low values. I guess you get what you pay for.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Funny how it never occurs to NAR a contributing reason for deal delays/failures can be partly caused by RE agent incompetence? Why is THAT never mentioned? Failures such as over pricing property, writing inflated price contracts with personal property, and concessions,, not qualifying buyers properly, not being realistic to sellers, cobbling together shaky deals etc. Until they add themselves to the list, this article is a repetition of those that came before; self serving drivel putting blame on everyone but themselves. (maybe the 30% "other" is their own incompetence )
 
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J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Amy- I see it all day long, cut values due to sheer quick and dirty appraising. They don't have time to be accurate, so they do nominal adjustments and provide low values. I guess you get what you pay for.

Unless you do review appraisals, how do you see this all day long? I highly doubt this out of town appraiser trope ...no lender wants to keep losing deals to low appraisals due to out of town appraisers..much as they love saving money or profit from a cheap pay AMC, they would pull the plug if that was happening. Nearly all AMC's do have a distance limit on where they send appraisers.

It's my personal opinion that if anything, a fast/cheap fee appraiser would tend to hit a SC price rather than come in "low", since coming in ";low " means A time consuming ROV and possible loss of business, the last thing a crank them out for volume appraiser wants.

Regardless of real or imagined incompetence due to distance or fee, the reality is it is fast and easy to slap in a low value, or inflate to a high value. What is hard ( and time consuming) is coming in at a well supported, credibly developed market value opinion, whatever spectrum of the value range it may fall in.
 
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J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Any appraiser coming in low deliberately to limit their liability would soon lose clients...I've heard this theory before and outside any few exceptions who might defy any norm, I've never run across it...I have on review work or appraisals handed me by owners/ agents seen appraisers apparently willing to risk liability by hitting outlandish SC prices/inflating values on refinance orders.
 
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