Voice of Appraisal

[Joe Flacco]

The buyers..seller's and often two Realtors all agree the purchase price is fair. That's multiple parties. The lone appraiser stands alone and unless he can provide hard data to prove otherwise he may just have a personal biases and doesn't like the property.

There are a lot of reasons why a property might be under contract for more or less than other sales. It goes both ways. Sometimes there is something not so obvious why a property is under contract for 10-20% more than similar sales on paper and sometimes there is something not so obvious why a property is under contract for 10-20% less than similar sales on paper. Understanding why doesn't make the appraiser a number hitter.

One assignment I got finished with has a back yard with a 45 degree slope down to the house and to the street. I'm sure he thinks he got a great deal for it when he bought it a few years back for no reason at all when in fact he bought it for a lower price than similar sales because the lot is a 45 degree slope from the back to the front.

There are a lot of things like that resulting in prices higher or lower than other sales. Knowing these things comes from experience.

 

[Joe Flacco]

I have this one ordered as a super rush closing in two weeks. It turns out it is an income restricted property and the buyer and both agents were not aware of it. Agent incompetence.

I am pretty sure an inexperienced appraiser would have just appraised it as if there were no covenants or resale restrictions.

 

[glenn walker]

I have this one ordered as a super rush closing in two weeks. It turns out it is an income restricted property and the buyer and both agents were not aware of it. Incompetence.

I am pretty sure an inexperienced appraiser would have just appraised it as if there were no covenants or resale restrictions.

That's why you make the big bucks .

 

[Joe Flacco]

That's why you make the big bucks .

Ha. I wish I made big bucks.

 

[glenn walker]

Ha. I wish I made big bucks.

You Won't appraising so stick with investing in the market's and don't trade all of it dump some in long term core holdings in high tech and ride the waves until retirement age.

 

[J Grant]

The market is usually right. So when you disagree with a contract price, you are basically saying that the buyer is not well advised and the agent might be incompetent. Some agents are incompetent. As are some appraisers.

? Then let lenders lend 100% of the time on every purchase price. But they don;t want to be responsible for the value if they do so. Of course, that will implode the housing market and lead to massive fraud but who cares, right?

 

[J Grant]

Slow down and read, J. I didn't say they had the same clients for 30 years. I said some of the worst appraisals I've seen were/are from appraisers with 30 years' experience.

The standard of excellence is REALLY low in the mortgage lending world.

WTF specified it was the same clients? They had enough clients over 30 yeas that if they were incompetent, one wonders how they lasted that long.

 

[J Grant]

The buyers..seller's and often two Realtors all agree the purchase price is fair. That's multiple parties. The lone appraiser stands alone and unless he can provide hard data to prove otherwise he may just have a personal biases and doesn't like the property.

Oh boo hoo, yes, the appraiser is the lone party with no financial interest in the outcome. That is the point.

It is inane or corrupt to say that if an appraiser's value differs from a contract, it is a personal view. These appraisals are challenged and the data holds up.

 

[J Grant]

The market is usually right. So when you disagree with a contract price, you are basically saying that the buyer is not well advised and the agent might be incompetent. Some agents are incompetent. As are some appraisers.

An appraiser is not disagreeing with a purchase price. An appraiser is appraising the property, and sometimes the value is the same as, other times higher, other times lower than the purchase price. The appraiser does not tell people what to pay. They are free to put down their own funds to make up the gap between the appraisal and the purchase price. Go for it !

 

[glenn walker]

WTF specified it was the same clients? They had enough clients over 30 yeas that if they were incompetent, one wonders how they lasted that long.

I told you how they lasted so long-
it's just not what you wanted to hear.

No difference in govt employment or corporate, the folks who make 30 years don't make waives, and are pleasers to their bosses. The appraisers boss is the Money Center Banks--the GSEs and AMCs that one gets orders from.