Appraisers in Need of Cash Today Have to Have On-The-Job Smarts

The importance of the appraiser

Appraisers looking for cash today, have to be smart. Research is showing that one of the biggest issues consumers trying to sell their properties have to contend with is the appraiser. At its best, the appraisal is supposed to help home buyers find the right priced home and keep lenders from overestimating the value of the property. If the appraisal is too high, buyers can risk defaulting on the home in the future. If the appraisal is too low, it may be too difficult to sell or refinance the home. Unfortunately, due to the recession, many industry experts are saying that the accuracy of the appraisal is falling sharply.

One case study of an appraisal

Bob Blake was selling his Palm Beach Gardens, Florida home. He was startled when the appraiser came back with an estimate that was well below what he expected. Homes in his area were selling for on average $290,000 but the appraiser valued his property at just $228,000. Blake and his mortgage broker immediately challenged the figure and practices of the appraisal company. Eventually, the company sent a revised appraisal that brought the home's value up to $295,000. The result was a more competitive, and reasonable price, but it still delayed Blake's plans to refinance for well-over a month and a half.

The debate over appraisals

There is naturally a debate over appraisals due to the competition between real estate agents and mortgage brokers. Each one has a vested interest in the price of a property and when an appraiser works against their stated home price, the deal can quickly be thrown off. In an effort to better regulate the field, New York Attorney General Andrew Cuomo is looking to change current appraisal legislation. In 2009 Cuomo pushed Fannie Mae and Freddie Mac to implement a stringent code of conduct for the appraisal industry. Due to the power of these two companies and their providing funding for most US home mortgages, the new code is now the nationally accepted standard. … click here to read the rest of the article titled “Appraisers in Need of Cash Today Have to Have On-The-Job Smarts“