In reaction to the sub-prime meltdown, recent lending rules have established large “blind pools” of appraisers. In theory, a random, arms-length relationship sounds like a great way to eliminate fraud. In reality, this arms-length security sometimes comes at the expense of local knowledge and expertise.
I definitely warn my buyers that they may have to deal with a poor appraisal. I have fought one appraisal successfully, but the time required forced us to delay the closing. A bad appraisal might also force a buyer to put more money down. Or the buyer might have to walk away from the sale entirely, forcing us to begin house-shopping all over again. Ouch!
Clearly, this problem is adding anxiety to the home-sale process. Ask any agent who is active in the market – this is a real problem. No one is trying to over-appraise these properties. But we all need fair and dependable expert appraisals for homes.
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