Thanks for your post. First, I can’t disagree with you regarding the title. Certainly not one of my better titles and different language should have been used.

I can understand your points. The one thing I would ask you to keep in mind is that it’s not the appraisers or them doing their job that I have an issue with… Rather it is the nonsensical results that are produced. For instance if a house has four offers and the appraisal comes in 100k under the lowest bid, it’s hard to defend the accuracy of that appraisal. Second, when you have appraisers who are not familiar with our market trying to identify the true value of the property, it can be exceedingly frustrating. For instance, the comparable houses used for comping a 3/2 in White Oaks should not be from Redwood City , Clearfield Park (east San Carlos) or Alder Manor (which does not attend San Carlos Schools). Local appraisers understand this and understand the differences in resale.

Thanks for the post.
Bob

People, just let appraisers to their job! And be thankful if by dutifully doing their job they help you not overpay for a house. Still wanna overpay for the house? Fine, just come up with more downpayment because the bank is no longer willing tojoin you on a very stupid financial transaction…

I commend the appraiser for taking the time to write such a great response to a clear nonsensical post of an otherwise reasonable blog. The title itself is a shame and should be changed; the public enemy number one for the real estate market (or any market) is the insane thought that you can get money for nothing and always win like in the first post.

Thanks for your post. First, let me be clear…I never said that the appraiser was “Public Enemy Number One”. In fact, I was quite clear that it is the entire process that is problematic. Most appraisers I know are doing everything they can under difficult circumstances to do their jobs with integrity.

I do have a problem with an appraiser taking jobs in areas that are clearly well out of a reasonable comfort zone. For instance, an appraiser calling to do a San Carlos appraisal with an area code of (707) is simply irresponsible.

The examples mentioned in the original post are 100% real and are not “simple” as stated in your post. They are very real examples of just how ridiculous the system has become. My examples are not alone either. Try polling other realtors regularly doing business in San Carlos and they will tell you the exact same thing.

The true value of a property is not determined by an appraiser or a realtor. The value of a property is determined by market forces. I do have an issue with a property which obtains multiple bids (at least three) and then the appraisal comes in below all three offer amounts. This just happened to me in San Carlos about four weeks ago and was not included in the original examples. The problem is rampant and a clear symptom of a much bigger problem.

If anyone is in need of an experienced, local, honest appraiser. Dennis Baldini would be an excellent choice. Please email me if you would like his contact information.

Bob

Your examples are to simple. You say the house is worth X per your valuation. Then the appraisal comes in to low. To low based on what? Your desire to get the deal done or based on market data.

Saying that the appraisal/appraiser is “Public Enemy Number One” is just killing the messenger and being an irresponsible Realtor. The more things change the more they stay the same.

For example, John says that his first appraisal is good and bad. Bad when the refi deal could not be done. Good when he could use it to lower his property tax.

Yeah, lets go back to the good old days when Brokers would threaten to not pay me or give me any more work if I did not “Hit the Number”. I can’t tell you how much work I lost because I would not hit numbers.

What I admit as an appraiser is I’ve always tried to figure out what the property is worth based on the market. What I’ve experienced is people just want to get the deal done and don’t care what it’s really worth. I understand because all the other parties are emotionally involved in the deal and have money at stake. Oh well I guess it’s just human nature.

The new system (HVCC) is not good and will be modified but don’t believe that the way it use to be was any good. Arguments have been made that part of the housing bubble was caused by appraisers caving into the pressure from Brokers to get deals done.

My hope is that this bad market has driven all the bad apples out our industry. I know I’m dreaming but ya got to have hope.

Yes, appraisals and valuations will be a problem in 2010. Not because of the appraisers but because of our continued economic problems. It’s hard to buy a house without a job. Appraisal 101, no jobs = no money = declining home values:)

I agree with your solution but would add that any body selling a house may want to talk to an appraiser. Find out what the house is worth from an appraiser and then talk to a Realtor to get an idea for a list price. But I would only recommend this for unique or high-end homes.

Good Luck in 2010