Monthly Archives: May 2010

APPRAISALS FOR HOMES! SHOULD THEY TRY TO PROVE VALUE OR DISPROVE VALUE?



As a long term veteran of Real Estate sales I have encountered many obstacles that have inhibited buyers from fulfilling their lifelong dream of owning a home. Many are reasonable, like credit issues, job issues, or even cash issues, but when the government decides to disrupt the flow by creating guidelines that tie the hands of the appraisers making it impossible to prove value and force them to disprove value then we have a major problem.



Just recently an appraiser decided not to use comparable homes that could have proved the value of a home for an FHA buyer who needed the seller to contribute a large part of their closing costs. Winter is usually slower and with short sales around every corner, the most recent sold homes are all under valued because of desparate sellers. However, there are so many homes currently under contract that will show an increase in value, or at least a plateau that the appraisers should account for this in some way, don't you think.



Last year another appraiser found that a home that I had a buyer willing to buy for $218,000 was only worth $185,000. I even went as far as appealing this appraisal because one of the home used in the appraisal that had settled for $185,000 didn't even have a kitchen in it (all ripped out). So how fair are the appraisers being to the sellers these days.



I am not out bashing appraisers, in fact, I have had almost all of my listings appraise, but the governement needs to know what is going on. How do we get through to them about this mess when we are trying to jumpstart the economy and the housing market?