Appraisals Yuk

New reports out today show that appraisals are still dragging on the recovering Housing market.  As I have said before we need to revamp the appraisal system and have all involved with the appraisal system working on the same page.

Here are the main points that the Association of Realtors makes as to why the appraisals still don’t work properly:

• Appraisers using foreclosures, short sales, and run-down properties as comparable homes, and not making adjustments for market conditions or the condition of the property.
• Appraised values that do not reflect market conditions such as rising prices, multiple bids, and low inventory.
• Inconsistent and fluctuating valuations.
• Out-of-town appraisers who are not familiar with the area or local market conditions.
• Slow turnaround time by both appraisers and banks.

If you would like to read the entire National Association of Realtor’s article go to this link.

I would like to point out that many of the homes that are appraised probably sit on the bottom of piles and piles of paperwork at the bank level.  In the business of appraisals it is very time sensitive, something the banks really don’t care about. 

How can the process work in unison with the other players? Get the organizations together and develop guidelines and timelines.  If this is worked out it will create a system of organization and progress that everyone needs to get our clients the best service and products.