If an offer comes in higher than the current appraised value on record, then a 2nd appraisal could be done. This works to the benefit of the buyer and the lien holder to arrive at market value.

This way the appraisal works honestly for both principles and and lien holders. This only hurts the bottom feeding short sale flipper.

The AMCs would be required to assign appraisals based on geographic location. No more appraisers from LA in San Diego, as they would be assigned local work in LA. The fee is initially paid by the short sale lender and reimbursed by the buyer at closing. Exceptions would be where dictated differently with govvie loans. Same money out of pocket for the buyer and the appraiser would see 75% of the fee.

Apply this to REOs and you wont have discounted distressed sales skewing the stats. Under this scenario, a comp is a comp. The market then rises or falls based on supply and demand, not artificial leverage.

How do I know that’s the case? I am an appraiser. I own a home the market values in the low 220,000′s. If I set the market, guess what? I would have sold that home for a cool million a long time ago.

Try to think before you speak. Or write. Many people have found it useful every time.
Live long and prosper!

Yeah, right.

I recently had an FHA appraisal from an appraiser who lived 3 miles (not 30) away from the subject property. Ostensibly, he knew the market. Ostensibly, he knew area market trends and could pick out reasonable comps. Instead he came in $4,000 less than a $216,000 sales price (.0185%). I cannot believe anyone — appraiser, Realtor — can be that accurate.

Buyers are low balling sellers because “Now, it’s my turn”. I think the same mindset has taken hold in the appraisal community. They are seeking their revenge against other real estate professionals (mortgage companies, Realtors) for supposedly making their life miserable during the “boom years”.

I get the same response from appraisers I follow on Twitter that Ben Goheen and the Institute make — “It’s the market”. Who, if not the appraisers, determine “market value”? Yes, real, live human beings, in the person of appraisers, set “market value”. Please, let’s stop making up stories about how some invisible force (God???) create market conditions.

Navy Chief, Navy Pride

I’m all in favor of fair valuations, but when lender ordered valuations consistently bear no correlation to what buyers are actually willing to pay for a property, then we have a problem.

Though as an appraiser I can usually easily cope with anything in a 30 mile radius.
But, then again, that may be because I’ve been an appraiser for well over 20 years, and in the real estate business for over 30 years.

Appraisers are being paid between 40% and 60% of their normal fee-for-service, by the AMCs (appraisal management companies) who have taken over the vast majority of the business.

The people you’re most likely seeing are either appraisers **trying** to turn out double the amount of appraisals to keep themselves housed & fed, or, appraisers who were most recently apprentices/trainees.

Quick…… After a month of double work for the same pay, (a) how tired would you be?, and, (b) how angry would you be?
Now….. How do you think this would affect the quality of your work.

OK… you **now** know why the HVCC works so well.