Take a peek at the appraisers job

I just read a fascinating article by David Feldman of First American Valuation Services on HousingWire. I think that it’s important for Realtors to understand how the market is changing from other professionals points of view – in this case, the appraiser.

What we all can see now is that at some point during the last decade or so, we lost respect for accurate collateral evaluations. Appraisals seemed to become less respected by some and others even questioned why we even needed appraisals at all.

Feldman explains that, despite the newfound respect for the need of accurate appraisals, new tensions are emerging:

Ironically, as appraisals and other forms of valuation are now more relevant than ever, our industry finds itself not only in turmoil, but also in the spotlight. Homeowners and their agents (mortgage brokers and realtors) are vociferously complaining about low values for refis and blown sales deals. There are new rules governing the selection of appraisers. Servicers and investors are looking for more efficient ways to value a sea of distressed assets. Lenders and GSEs are requiring appraisers to do new kinds of analysis (though not always for more money.) And tensions are at an all time high between independent appraisers and appraisal management companies (AMCs).

It’s a long article, but has a lot of value for real estate professionals.

Valuing Real Estate in the Early Stages of Market Recovery [HousingWire]