I just went through a major appraisal issue. It was really disappointing. I know what happened in the past was ridiculous, but why must we replace ridiculous with PATHETIC???
What I just experienced was an appraiser that took an inferior home adjusted it for that reason and came to a value above sales price. Then still appraised the home at a value 10% below this adjustment. I can’t give all the specifics. But here is what I learned. Even Though we made a valid case for the value and 2 of the 3 comps justified the value. And the buyer wanted to go to the sales price and raise the appraisal. The appraiser did not care. He/she has no accountability, no client that can turn off his business. He/she did not care about fair, right and wrong, or helping people. The home is down 50% from its high. It is in superb condition, not a Foreclosure of Short Sale. The comps are all over the place. The buyer even tried to come out of pocket with another $10k equivalent to make the deal work. Is that not an example of market value. We had 2 offers in 10 days. This is so disappointing. The seller can’t go lower, they are already bringing $75k to the table. They do not want to damage their credit and the appraiser killed it for them. You see this is an FHA deal and the appraisal sticks for 6 months.
What to do? I tried to meet the appraiser and make my case, but I was circumvented. The agent Must Meet the Appraiser and give the best comps to have a chance in a Foreclosure driven market. It is interesting, the appraiser said we are in a declining market. Has he done his homework. Prices are up nearly 10% since March in Metro Phoenix. This is a verifiable fact. Just check the number on the MLS. OK time to stop and get back to work!! Below are some updates about the attempt to repeal this awful law!
Just my opinion…Jeff Cameron
URGENT HVCC UPDATE:
HVCC Continues to devastate home values across the US. We fear that with higher Fannie and Freddie loan limits it will carry through to our former “jumbo” markets, leading the country even further into recession.As we’ve shared, Representatives Childers(D-MS) and Miller (R-CA) introduced legislation (H.R. 3044) requesting an 18 month moratorium on the Home Valuation Code of Conduct (HVCC). H.R. 3044 now has 22 co-sponsors and now is the time to forward our petition to every person you know and every representative in the country. Read some of the comments in the petition and you will soon understand the harmful nature of this horribly misguided code.
ThinkBigWorkSmallapplauds the introduction of H.R. 3044 and would like to thank Representative Childers(D-MS) and Representative Miller (R-CA) for their continued efforts and leadership on this issue but it is not enough. Tens of thousands of consumers have already been robbed of their opportunity to enjoy historically low rates by Attorney General Andrew Cuomo’s rule. HVCC needs to be permanently reversed in order to restore lower costs to the consumer and to protect the thousands of real estate transactions stalled by this horribly misguided code.
Please sign and forward the following petition and forward to everyone you know in the industry and ask them to forward to their representatives: http://go.edir4.com/_p_ga4x2nexudfubkexrdrc2kkxgjfubjq3bdvc2nwxta4x2mtsgdfx2uts7a4ynyhfqcuw7yd5568zxy9ff4junbjfw4mkn6js288mxa5n_p_/click.emaildirect
ThinkBigWorkSmall, 3700 Hilborn Road, Suite 700 Fairfield, CA 94534
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Representatives Childers (D-MS) and Miller (R-CA) introduced legislation (H.R. 3044) requesting an 18 month moratorium on the Home Valuation Code of Conduct (HVCC). ThinkBigWorkSmallapplauds the introduction of H.R. 3044 and would like to thank Representative Childers(D-MS) and Representative Miller (R-CA) for their continued efforts and leadership on this issue but it is not enough. Tens of thousands of consumers have already been robbed of their opportunity to enjoy historically low rates by Attorney General Andrew Cuomo’s rule. HVCC needs to be permanently reversed in order to lower costs to the consumer and to restore the thousands of real estate transactions stalled by this horribly misguided code. We the undersigned understand that the intentions of the Home Valuation Code of Conduct (“HVCC”) were to help curb the potential for fraud with respect to the valuation of residential properties. We must however bring to your attention the reality of the situation that HVCC has already caused.
Since “Appraisal Management Companies (AMC’s)” are taking up to 40% of the total appraisal fee, and are not being regulated to ensure that their appraisers are licensed and competent, we are seeing unlicensed and inexperienced individuals performing property inspections with grave data entry errors. These inferior appraisals are then being “signed-off” by other parties that NEVER INSPECTED THE PROPERTY and are creating unnecessary financial hardship for buyers and sellers.
With mortgage loans being denied due to inaccurate appraisals, borrowers are being forced to apply with other lenders who in turn have to charge the consumer ANOTHER APPRAISAL FEE to proceed with the transaction. This vicious cycle can go on endlessly costing well intended clients a great deal of money and time.
Under HVCC, no one involved in the transaction is allowed to communicate these major issues (EVEN LICENSED LOAN ORIGINATORS) directly to their appraisers. So countless real estate transactions that would have otherwise closed are now failing, resulting in continued property devaluation and offering NO stimulus to our economy with the exception of the unregulated AMC’s who are making unjustified profits at the expense of home loan applicants and licensed, qualified appraisers.
Licensed appraisers have legal and ethical standards in place already. The emphasis should be on making appraisers abide by these, rather than frustrating the ordering and communication process. This well intended legislation is severely misguided.
Although HVCC has good intentions, its flaws are severely hurting our housing industry, the consumer and our economy. We are requesting that HVCC be discontinued permanently, in order to stop the devastation it has caused and will continue to cause on our housing industry and our economy.
480-652-2004