It has long been known that lender appraisals, that is, appraisals ordered by lenders to verify the value of homes, are usually equal to or higher than the contract price. Unlike the selling price, the appraised value of the home may not be what sellers are asking for their home. Lenders will only allow a loan amount based on the value of the home listed in the appraisal report. Apartments on the upper floors are generally worth more than those on the lower floors, especially when they clean the tops of surrounding buildings, providing better views and more privacy, he says.
Appraisers record square meters, the number of bedrooms and bathrooms, and other basic elements, but they also consider the general condition and consider it bad, fair, normal or good. While some buyers may be willing to pay more for those finishes, he said, “there's a difference between what the market will perceive as added value and what an appraiser will determine. In short, a low valuation causes costly delays and homes that remain on the market for extended periods of time. In your second paragraph, you call “ignorant” those who would dare to challenge an appraiser to perform the appraisal without the benefit of a copy of the sales contract.
Thank you for pointing out in your first few paragraphs that your services are not necessary and that appraisers have a useless profession. I simply didn't agree with their fraudulent evaluation methods and plans, I stopped the review company engaging in that type of activity and revealed their scams in essence. In response to the housing crisis, Freddie Mac, the Federal Housing Finance Agency and the New York Attorney General's Office created the Code of Conduct for Home Valuation, which prohibited loan officers from selecting and communicating with appraisers, a provision that has since become a federal regulation. I just lost a pretty good customer who sent me a letter about 6 months ago saying that he was among the 1.5% highest appraisers they used in the entire country.
I will simply re-emphasize the general point of the article, which is that the purchase price should be part of the analysis. Or, at the very least, create suspicion when the appearance of valued securities equals the contract price as often as it does. In addition, I worked at a residential real estate appraisal management firm in the appraisal review department for almost two years. Yes, based on OTHER properties sold and listed recently and also, I hope, based on a lot of other information that the appraiser should know.
For me, this is the reason why the appraiser should not see the contract, he is supposed to be the expert, making the evaluation based on what is being sold, not on the pending sale of the house in question.