Today’s Wall Street Journal reports on the impact appraisals are having on the real estate transaction, whether it be a sale or refinance. The article covers all the current hot topics of the appraisal industry: HVCC, AMCs, and appraiser pressure.
The article focuses primarily on how these factors are influencing the ability to sell or refinance. Making things more difficult is the fact that values are hard to determine in today’s market. One woman’s home appraised at over $600,000 two years ago and just recently re-appraised at $250,000, according to the Journal. Prices are volatile and lenders are pressuring appraisers to be more conservative.
The Journal noted that HVCC prevents some abuses at the expense of flexibility. AMCs are cutting into appraiser fees and one appraiser acknowledged that he received an assignment 100 miles away in an area where he has little knowledge of the neighborhoods.