Do you have recent observation with real estate appraisers?
by Admin - January 20th, 2010.Filed under: Real Estate Appraisers. Tagged as: Appraisers, Estate, observation, Real, recent.
Real estate appraising for single family homes is as much a science as reading tea leaves. The last 15 years, appraisers just used soem comps from the area. Now, real estate has zero value, unless a buyer is there and appraisers use comps form 6 month ago, because there are none recent. What is in your opinion the value of a 400 Dollar appraisal, based on bull?
January 20th, 2010 at 6:22 pm
Yes… appraisers have to use comps from 6 months or earlier. That is obviously because of the lack of confidence that lenders have in the housing market right now. A good appraiser will find at least the 3 most comparable houses in the area and adjust them accordingly, giving the value. That is not based on bull, that is how value is calculated.
January 20th, 2010 at 6:43 pm
I have had several, as I have several properties in escrow, one closing this morning.
You are listening to the news too much, there is plenty of sales to obtain comps from. The standard is to use 4 months, not 6.
January 20th, 2010 at 7:12 pm
If you know Appraisers who are reading tea leaves to determine values then turn them into the state! Now Seriously, if there really are no comps newer than 6 months, then that is what the Appraiser must use and he/she would have to consider making an adjustment for time (although without more recent comps, determing what the adjustment should be per month would be difficult).
The Standard according to FNMA is comps within 1 year and within 1 mile of the subject property. They prefer (effectively require) that the comps be no more than 6 months old and in todays market, they really want to see 1 or 2 comps as recent as 90 days.
It also depends on where you live. If the county where you live is considered a soft market, the bank will be more demanding of newer comps and conservative values. I live on Long Island and the two counties out here are considered soft but I can show the bank MANY places where the opposite is true. NY city is not considered soft, but the Bronx (a borough and County) is considered soft.
So, while you may consider the appraisl to be bull, unless the Appraiser did not adhere to USPAP standards, the appraisal is legit and you are just not happy with the results.