Sometimes real estate issues are specifically local. Sometimes it’s a national trend. This article in the Wichita Business Journal discusses appraisal issues that ring true in my business experiences here.
The bottom line is that appraisals should always be accurate within one percent. That’s my opinion. I’ve never understood why people are allowed to buy a home astronomically over priced by buying down the mortgage amount with cash. It ruins the market valuation abilities for a neighborhood just as much as foreclosures selling for 15k ruin them.
But, appraisers, like the rest of us in real estate, need to know what they are doing. They need to know how to evaluate a neighborhood. An appraiser from Portage County may not really do the best job in Tuscarawas, no? Just like I don’t know the neighborhoods near Columbus, if someone wanted to buy a home there, I would refer them. Why can’t appraisal company have a network of experienced appraisers in each county so they can refer as well.
The changes in practice of what appraisers are used is not a change in law, but a ‘rotation’ system that should have always been in effect. But you know how things go…lenders, in some cases, were using their usual appraisers and appraisers then felt ‘beholdin’ and apparently would adjust appraisals.
But using a valid rotation system makes sense. All of us, especially home owners and buyers, expect professionals to know what they are doing. It’s not too much to ask!
What do you think! Peace Out 3C
Update: not a rah rah NAR person (by any means) but here is a blog post from their site, written by an Ohio real estate agent, to add to the Wichita perspective. Good links on this post as well.
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