Crumbling Down – Uh-Huh 1983
It seems that homeowners and buyers can’t seem to accept the reality check when it comes to home values.
Especially when it comes down to closing a deal. And their chief target of recrimination? Your friendly neighborhood appraiser.
But appraisers are not only dealing with the reproachful buyer and seller, it seems the professional realtor and MLO also like to shoot the messenger.
These were the same people who were blamed for the escalation in home values. So the appraiser gets it on both ends, doesn’t he?
What people can’t seem to grasp is that the primary source of valuation comes from the comparable sales in the neighborhood. And the neighborhood can only stretched so far.
If you live in The Bronx, New Rochelle is only 10 minutes away. However, you cannot stretch the neighborhood all the way there. Nope, sorry. You must use something in The Bronx.
I understand that it is tough out there and nothing can be worse than a deal falling apart because the appraisal won’t carry the sales price and the buyer cannot come up with the extra dollars to close the gap.
It’s a slap in the face. But with the entire appraisal industry under scrutiny, especially the big managed firms. Those guys engaged in a conflict of interest.
But you cannot blame the sole practitioner for the entire mess. He can only stretch things so far before he loses his license, right?
Get real folks. Home values have lost about 40% of their value from their high water mark and there are literally 10 million more weighing down the trap door on the economic carnival chute.
You have not seen the bottom yet and the new (and final) inventory is about to get shoved into the mix.
The good news is that faster it hits, the faster we reach bottom. And that means there is only one way to go – up!
So whatever else you do, don’t shoot the messenger. Be kind…
Appraisal Source is a New York based residential real estate appraisal firm. Their highly-qualified appraisal staff provides independent residential real estate appraisals throughout Long Island and New York City.
Here’s the original article…In rough real estate market, appraisers feel heat for home sales that fall apart or lag behind