Appraisers Lowball Everett Real Estate
Posted: Monday, January 11, 2010
by Jim Johnson
Metropolitan Mortgage
Appraisers should be independent from banks
When a "captured" appraiser sites the value on Everett real estate
is it an honest market value? If the appraiser gets his work from the
bank how can he give a true arms length valuation? A captured appraiser
is one working for an appraisal management company. What they don't
tell you is that the major lenders own the appraisal management
companies. Since the lenders now pick the appraiser they figured out
that there was a huge revenue stream just waiting to be tapped here.
They hire barely qualified to not qualified appraisers and pay them
about half of what they used to receive. The appraiser is not stupid
and realizes that if his appraisals lead to bad loans he gets fired. So
he lowballs the appraisal. The client still has to pay for this junk so
the bank makes a few hundred dollars even if the deal doesn't happen.
If you follow the HVCC story you will know I am on the right track. HVCC is the home valuation code of conduct. This is another political boondoggle sponsored by Mr. Cuomo.
But let's look at it from another angle. When valuing Everett real estate should you include distressed sales in the mix with non distressed sales. If you include a foreclosed home that sold on the court house steps is that a fair comparable to a regular arms length sale? Personally I think not. The facts back me up on this.
A new analysis of foreclosure and non-foreclosure sales by Zillow.com found that even when most of the market is made up of bank-owned homes, non- foreclosures sell for as much as 30 percent more. Another study by Harvard's Joint Center for Housing Studies came up with a similar conclusion.
Now you say well the banks are not making any money if the mortgage doesn't happen. Well guess again. Look for headlines in the next few days. Bankers will be receiving 6, 7 and many even 8 figure bonuses. If I wasn't as old as I am I would change my profession. Right now there is no money in Everett real estate. There is in ripping off the US taxpayer.
My friend ever day some faceless bureaucrat or some noise some politician is stealing your liberty. Every day they take a little here and a little there and some day you will wake up and see your freedom gone. When will you finally get pissed off enough to do something about it. So the question remains do appraisers lowball Everett real estate?
Jim Johnson and comments are always welcome.
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