Talk of The Villages Florida - TV pricing vs. appraisals

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There was an article about a month ago in the business section of the NY Post that said that today's bank appraisers are working VERY conservatively when they appraise home values following the home market meltdown of 2008-09. Many people are getting very surprised when the price and the appraisal are differing by large amounts. If you use the Zillow website and compare listing prices in this area to their "Zestimate" tool you often find differences of many thousands of dollars. If you're buying a home and you have to get a mortgage it could be well worth your while to hire your own appraiser on a home you really like or want, because you may have to do some heavy negotiating with the bank because their appraiser comes in with a much lower value.

I was a Fl. Certified General Appraiser and got out of the business 20 years ago. The industry, as we now know, was rife with fraud. I think it still is, to a certain extent. Conflicts of interest everywhere in a sales environment.

An appraisal is an opinion of value. It is subjective but based on sound principles. It is totally market driven. If the appraiser works for and is hired by the lender, do you think he will hit the lender's number? If he doesn't, he won't last long.

Btw, one sale does not make a market.

If one has strong ethics and standards, one should not be in the business.

Quote:

Originally Posted by keithwand (Post 866243)

AND.. Realtors unless they are also licensed Real Estate Appraisers can only give you a Market Comparison or Analysis.
When picking 3 comps for an appraisal; other appraisers could use 3 totally different comps. Depends on the individual appraiser.
The best appraisal is when the appraiser doesn't know the value the lender is looking for.
BTW; an Appraiser only gets paid if the loan/ house closes.

Quote:

Originally Posted by perrjojo (Post 866255)

I can't speak for Practices everywhere but I have been in the mortgage business and my daughter is currently in the business and the appraiser ALWAYS Gets paid. That is why lenders ask for credit report fees and appraisal fees upfront.

Keithwand: An appraiser always uses properties within the area of the subject property, if there have been any sales within the last three months. Other than that, they go to a similar area which is generally close by.

The appraiser is sent out by the lender. Oviously, he knows exactly who the lender is. The lender is paying him. Lenders have a few specific appraisers whom they always use. BTW -- The appraiser always gets paid. they don't work for nothing!

Perrjojo: You took the words out of my mouth and said what I was going to comment on . . . Yes -- an appraiser always gets paid, regardless of the outcome of the deal. It's the Realtors who don't get paid if the property doesn't close.

Quote:

Originally Posted by keithwand (Post 866271)

Not in FL.
I got paid for an appraisal if the loan closed.
If the borrower changed their mind or switched lenders then there was no compensation.
It didn't happen often.
A homeowner or realtor can pay for an appraisal. It doesn't have to be a lender. Then it's yours.
The appraisal belongs to the lender originating the appraisal and not the homeowner.

What is your designation as an appraiser?

Yes, anyone can pay for an appraisal.
The only time I've ever seen a homeowner pay for an appraisal
is when he wants to meet the 20% criteria of the loan-to-value
because he wants to get rid of his P.M.I.

Yes, the appraisal belongs to the lender,
but that doesn't have anything to do with the this topic.

BTW -- the word Realtor is always capitalized
because it is a registered trademark of the
National Association of Realtors.

Gee; you are so knowledgeable you must be an appraiser or realtor. No caps intended.
I performed appraisals in the greater Orlando area which included 6 counties with 80 percent from Country Wide. I did collect on about 99 percent of my jobs I went out on.
I was also a licensed real estate agent.
My wife was a commercial real estate broker.
Having owned/ rented commercial, SF and MF we know real estate.
Thank you for your qualified input and spell check.
Enough said.