Round 2 of the Heavyweight Fight: Calling in the Big Guns

On January, 16, 2009, we brought to you the valuation fight that is appraisals vs. broker price opinions (BPO).  Today we bring you Round 2 – and this time it’s personal.  Well, it’s not really personal but there is a clear difference of opinion.

Last week, the Appraisal Institute (AI) sent a letter to Treasury Secretary Geithner expressing concerns about the use of BPOs in the HAFA loan modification program.  In the letter to Treasury, AI states that BPOs are likely to exacerbate mortgage fraud.  Further, real estate agents who perform BPOs are not independent, not properly trained, have a bias towards quick results  for a fee, and have little or no regard for the other parties of a short sale transaction (lenders, servicers, investors, property owners, etc).

Within days, the National Association of REALTORS (NAR) responded to AI comments in letters to Secretary Geithner and Housing and Urban Development (HUD) Secretary Donovan.  In the letter, NAR recognizes the need for flexibility in any mortgage modification program and notes the importance of the appraisal for purchase money mortgage transactions. However, NAR believes an appraisal may not be the best tool for all real estate transactions.  BPOs are widely accepted in the real estate industry and there is no evidence that their use results in mortgage fraud.  NAR also argues that there is no evidence to support the idea that appraisers are more or less likely to engage in mortgage fraud than real estate agents.

  1. I have been a general certified appraiser & member of NAR for over 25 years. I find it very interesting that NAR charges me the same dues as a broker, & even classifies me as a broker, but I can’t even list my own residence in MLS. Yet it champions the illegal BPO (it is against the law in my state to do an opinion of value except in the listing of a property) to the detriment of appraisers. If brokers & agents are willing to work for such little pay, I think I’ll find one that give me access to his MLS & pay his dues. That way he can save about $1,500 per year & I can sell data to other folks. Sounds like a deal to me!

  2. Carl S

    I think this thread could serve as proof that the bar for entry into the real estate business is far to low. Same for builders. Heck my sister has a builders license because she passed the test, and she doesn’t know one end of a hammer from the other. That’s the real problem. After 26 years in real estate, I just don’t care anymore. Many of us have been harping about the lack of professionalism in real estate for decades and nothing is ever done about it. Even NAR hung with David Learha or whatever his name was for YEARS! His economic forecasting was laughable. Perfectly accurate right up until the market imploded though.

    I’ve been buying houses, fixing, and selling them since the day I started in real estate. I’ve never seen a BPO or an appraisal that I’d use for toilet paper for my worst enemies. I’ve seen appraisals differ by as much as $100K on the same property. Seems accurate, huh? I don’t care which edition of Marshall & Swift you use, unless the properties you’re attempting to match are the same model in the same tract and sold around the same time, only the buyer knows for sure what the value of the property might be to them.

    Here’s what I know for sure though; I put my own money and time at risk every time I buy a property. I’d better know what the value is going in or I’m sunk. I’m still here after 26 years so I must know what I’m doing. Frankly, with all the gymnastics I see going on with ever longer forms to fill out with widely varying and ever increasing data analysis and adjustments the only thing I’m relatively sure of is I’d never base a buying, lending, or borrowing decision on any of these methods. Another thing I know for sure is the material costs that go into building an improvement don’t differ much from one end of the country to the other. Take two identical houses and plop them on a lot one in Ohio and one in California. The one in Ohio will sell for $150K and the one in California will sell for $450K. What does that tell you? Now remove each one from the lots leaving them vacant. What are they worth now? $5k-10K apiece? Once you remove them from the land they have about the same value as a new car as soon as you drive it off the dealers lot. That’s a fact.

    If appraisals and BPO’s were done correctly they would be done using current cost of materials with a depreciation factor for older homes or an appreciation factor for older homes with materials and workmanship that can’t be duplicated with the cookie cutter style we use to build homes with today.

    The only remaining factor then is the land, the location, and whether the location is on an upward swing or decaying.

    I can still make money in a decaying area as long as I buy correctly to begin with. I always tell my buyer’s that making sound real estate investment decisions is about knowing what NOT to buy. If you learn how to do that, you’re in clover.

    So you guys keep on arguing about who’s better and who’s worse. In my book, until you start gambling with your own money on your expert analysis, you’re all lousy.

    That said, I’ve got a short sale with Chase I’m going to go work on. I’m doing it for my kids and grand kids. Chase will either take my offer based on sound value analysis or I’ll walk to the next deal. No BPO’s, CMA’s or Appraisals needed . . .

  3. Ronald Keeler - Realtor/Cert Gen Appraiser

    I am a Realtor (spelled with a capital “R”). I have been a Realtor since 1967. I have been a salsperson, sales manager, co-owner of a real estate office and for the last 32 years a full time appraiser. I still have my brokers license and I am a Certified General Real Estate Appraiser Certification in the State of Arizona. I have read every preceding post. Many make good sense. One thread I will agree with is there has been a problem with a lack of professionalism in both the brokerage and appraisal disciplines. Looking at the real estate industry from the outside, I can see many internal problems. Many of the post have mentioned appraisers hitting values almost every time. Unfortunately, during the run up in the market, the pracice was relatively routine. There were a few of us who sometimes didn’t “make” value. We are suffering the most today. Because Realtor-Brokers, Loan Brokers, Bankers, etc didn’t care about having a supportable value. They wanted us to confirm the contract. Too many appraisers complied. The credibility of the apprasial industry was compromised badly. But, before you Realtor – Brokers began to crow too much, remember, I included you in the list of protagonists. I can’t begin to count the number of times a broker called me after I did an appraisal, insulting me, being disrespectful and telling me I was too stupid to recognize what value was. I would go to meetings and say “this market is not sustainable” and be told I was too old, too out of date and should find something else to do, because the market would continue to go up forever. Common sense would tell one that such a situation could not prevail because values were going to outrun the typical buyers ability to pay. But there wasn’t much common sense in the real estate market at any level from about 1998 through the middle of 2007. Those of us who had been around had seen a precursor of this market in the early to mid 70’s and again in the mid 80’s when interest rates finally fell from 17.5% to 6.5% for about 18 months. Prices escalated based on a buyers ability to make a mortgage payment, without regard to what the price was. Most buyers buy on payment, not on price. Had Realtor-Brokers counseled buyers, where the financial industry failed, by asking buyers if they could make the payments they were going to be faced with when their rate adjusted upwards from 3.5-4.5% to 6.5% many buyers would have looked at price as a function of the purchase. But the Broker/Agent failed to counsel for the most part. My point is, there is enough blame to go around. I would suggest that Broker/Agents learn how to qualify a buyer from an economic point of view like we used to do 42 years ago, and not depend upon the lenders LSR, because thellender is simply saying the buyer can borrower up to a certain amount at tody’s rate (what about the future rate after adjustment?). Because we both know the lender is triying to obligate the buyer to the biggest loan they can get at the lowest possible rate. If it’s a fixed rate, that’s alright, but I’m seeing new adjustable rate loans being written now, that’s unbelievable, if not unbelievable, it is less than professional. We are not even close to being out of the last fiasco and many of you are helping buyers into the next one already. In 12 years of selling, I personally sold over 400 properties, acquired more than 900 listings, of which 55% ended up in escrow, I have appraised over 12,000 properties both residential and commercial, I think I’ve done enough to have a handle on things. . Let’s just stick to what we do best, we will appraise them, you sell them, let’s be honest, ethical and professional. I would like to say I’m proud to be a member of the National Association of Realtors and that the orgainization recognizes my longevity, contributions and the professional work I do. Right now, I’m not sure that I can say that I’m proud of the position the organization has taken and of the orgainization I’ve spent 2/3rds of my life supporting through membership and service.

  4. Ronald Keeler - Realtor/Cert Gen Appraiser

    By the way, my sale and listing production was without the aid of assistants. I did it all myself.

  5. In the last 90 days, I have done maybe 40 BPOs for lenders and I was not paid anything! I choose to do this so that I have an opportunity to work with these lenders should the property foreclose. I am doing exterior opinions only, but i take the time and effort to make sure it is as thorough a job as one could do driving by without the benefit of an interior inspection. Because I am thorough, and competent, when I do accept an REO listing, I can suggest pricing appropriately based on the market and the condition of the home. I have had an excellent turn rate with a higher than normal yield spread than other agents in my area. I typically have the same results with standard owner listings as well. I say this to point out that not ALL agents are incompetent in giving an opinion of value.

    On the other hand, I recently heard from a neighbor on my street that the BPO the bank providied on her home had her $20k upside down from what she paid a few years ago. The strange thing is, I had a home on our street listed that was exactly the same floorplan as her home. Listed at $173k, under contract at $168k, there were no appraisal issues at closing, yet her home (which was well maintained by the way) came in at $145k. This is definitely a case of an agent who was incompetent to give a proper valuation.

    At the same time, I have seen appraisals over the years that a bank had ordered and providied to me when listing an REO property. Going through the mills, they were getting appraisers outside of our area. They were using comps beyond 5 miles to support their valuations when I could provide closer comps with more recent sale dates. Sometimes the difference in opinion of value was nominal. Others not so nominal. My point being, the appraisers aren’t above reproach.

    I concede that in MOST cases, the appraiser will spend much more time and will have a more accurate picture of the value. But when a bank is going to foreclose on a property, they are probbaly not going to get market value on the sale of that property anyway. I would guess that 80-85% of market value on an average would very generous. If the asset manager has any confidence in the agent they are using, i see them going the cheaper route with a BPO. But for loan modifications, I would be 100% behind any law that required a full appraisal by a qualified, competent and trained appraiser from the area the home is located in!

    I believe we are all in this mess together. Pointing to the other with blame is not conducive to fixing the problems in the industry and certainly not a good use of either’s time. We need to be policing our own side of the line and help to educate those who are performing poorly, and report those who are operating in grey areas.

  6. Appraisals safe guard banks and buyers and insure that the purchase price is justified. A BPO will never replace an appraisal. I don’t believe any Realtor would say that a BPO could, should or would ever replace an appraial for a buyer.

    If an appraiser won’t do a BPO for the current going rate and Realtors will accept the current going rate then why not let Realtors do BPO’s?

    Appraisers are not loosing business to BPOs. BPOs have evolved as a needed service in the industry. New services are created to satisfy a need whether it’s Facebook, cost cutters hair salons or Google or BPOs.

    If an appraiser wants a piece of the BPO business they can adapt and offer BPOs in the same way that restraunts order an early bird menu, a prix fixe menu or McDonalds offers the dollar menu.

    If Realtors can give a seller a price opinion why is it any different when a Realtor gives a seller who happens to be a bank a price opinion? I haven’t met a seller that wanted to buy an appraisal before they went on the market. Why should a seller that happens to be a bank be required to get an appraisal?

    BPO’s are present and future oriented. Current listings that will be competing with the subject property are considered. If there is a lot of competition the BPO will be lower. If there is little competition the BPO will be higher. If the market is declining the BPO will be lower.

    Appraisals are past oriented. Current listings are not considered. If the market is declining the appraisal may be higher since it’s looking at sales that are a few months old.

    A perfect appraisal may not reflect the price the property will get once it’s put on the market. The bank is looking for a starting price to put the property on the market.

    By the time a BPO is ordered andan offer is sitting on the banks desk the bank has ordered a few BPO’s to price the property and another to evaluate the current offer. A single BPO is not going to influence the entire transaction.

    The bank has a record of what has happened in sold transactions. They know how many BPOs have been ordered, the value and who did the BPO. If a Realtor gives improper values the bank will not continue to use the Realtor for BPOs. The have the history of the transaction in their computer from the initial BPOs to the final sale price.

    BPO’s estimate the value and then the subject property goes on the market and then market decides the value. If the property sits for months the BPO is too high.

    Getting rid of BPOs will not increase the number of appraisals that banks order when they are listing a property. REO departments do not rely completely on BPOs and may order 3 BPOs from different Realtors to see if the values match. If banks can’t buy BPOs the banks will simply find another way to get a general idea of value. Maybe the bank will depend upon the tax appraiser. Maybe the bank will rely on Zillow. Whatever new method the bank decides to use will probably not be as good as a few BPOs.

  7. John Morrison

    As a real estate broker, it is true that appraisals are a more accurate portrayal of value than BPO’s. However, not every appraiser is competent, and not every brokers BPO is useless. We should however as real estate professionals leave appraising to appraisers and real estate facilitating to brokers.

  8. I can’t stand sitting by and watching you all fight over what amounts to be ‘nothing’. Yes, lenders are using BPO’s more than normally. But, first of all they have a basis that they are seeking to recoup, be it a short sale or a loan modification. I don’t think the lender should be concerned about loan to value on a modification. A BPO is just a rudimentary procedure to establish an air of concern. The bottom line is, if someone is getting their loan modified chances are their next step is a short sale or a foreclosure. What difference should it make to the lender.

    Regarding BPO’s for foreclosure. We get a moderate amount and we do charge, but it’s painful. The crappy $50 takes me about 2 1/2 hours and sometimes $20 in gas!! I do it, because I am hoping to list the property at some point. The BPO’s are so stringent that, at least in New England, no two homes are alike. We don’t have ‘track’ homes and everyone is an excercise in real estate knowledge and expertise.

    If everytime a lender ordered a BPO, we had to wait for an appraiser — it would take months, compared to the 48 hour turn around we provide. And, in the end, who would pay? Probably you and I in some other kind of bailout.

  9. Andy

    FNMA’s appraisal guidelines were really not written for the possibility of REOs having such an impact on the typically motivated market.

    Maya, please allow me a friendly addition to your comment “Appraisals are past oriented. Current listings are not considered.” With the introduction of the 1004MC form, current market conditions and listings are required. Also, more and more lenders are requiring current listings in their appraisal reports. Tthat being said, FNMA pretty much prohibits the appraiser from placing great weight on the listings, forcing them to rely on the adjusted values of the sales comps. If we had perfect Time adjustments being made, this would still be accurate.

    However as an earlier comment pointed out, in some cases, appraisals aren’t much more than nice looking guesses that pass a technical review but lack a strong case for it’s value conclusion. In those isntrnaces, there really is no good appraisal to be completed, despite the fact that the lender may receive one from the appraiser.

    If the broker or appraiser aren’t good at what they do, the report is suspect. If there is a severs paucity of market data, the report is suspect.

    Good luck everyone!

  10. JHall Colorado

    Listen, a Realtor is in the real estate industry to make sales. A Realtor is a salesman. / An appraiser is in the real estate industry to provide consumer protection for both borrowers and lenders, and provide fair and unbiased market valuations. / Would you rather have pricing set by the salesman or an unbiased fair party? You could bet the salesman will price hi/low depending on his motivations and his opinion of the “price most likely to land them the listing” (biased influence). A Realtor will not approach the price with loosing his license in mind if that price is wrong, like an appraiser would. / IE: BPO (salesmans biased price) vs Appraisal (unbiased independent party price). ///// It’s quite obvious that Realtors list in a biased way, and a BPO should not take the place of an appraisal for any reason. // Now big banks are employing appraisers to review and validate BPO’s. I’ve spoken with appraisers who review BPO’s, they state that the value opinions / price opinions of BPO’s need regularly adjusted and are more often than not unrealistic opinions. // Without an appraiser involved in pricing and valuation, there will undoubtedly be biased pricing more often than not.

  11. Jim

    I don’t think many of the Realtors understand the liability & record keeping issue for appraisers should they do a BPO. Would those of you who do BPO’s be as comfortable doing them if you could be sued if anything is found to be wrong with it? How about it you had to keep a folder with all the comps you considered, and a copy of the report for 5 years? How about if someone doesnt like it, they can send a complaint to the state and cause you to pay out thousands to defend your BPO? For an appraiser, this is what must be dealt with for that $25 – $50 fee should they start doing BPO’s.

    Would the Realtors posting have a problem if the rules were changed to allow an appraiser to complete a BPO without needing to deal with any of these issues, just like a Realtor?

    How about it Realtors could complete BPO’s, but must comply with the current appraisal standards? Why can’t both appraisers and agents have the same rules when doing a BPO?

  12. bo

    Cool since Realtors can do appraisal without a license, then I should be able to sell houses without a license. Works for me.

  13. Captain M

    March 18, 2010 at 5:57 pm
    Here is the deal. If a BPO done by a Real Estate Agent with no training in appraisal is as good as a typical appraisal, then do we really need appraisal licensing? If it is true that after 2-3 years of supervised training, 200+ hours of courses and exams, a typical appraiser is no better than a Real Estate Agent with no training, I submit that appraisal training and classes are worthless. Just something to think about….


    Such a DEAL? presented with abject subjectivity. Void of any objectivity or factual justification. The above summary analysis, conclusions (including the previous post by a 34 yr veteran broker) …or DEAL could only be presented by individuals who have a vested financial interest in outcome of the BPO valuation.

  14. Captain M

    And to my prior comments I would also mention the many times an appraiser was told by a Realtor who applied pressure…Make the deal work or else I will find an appraiser who will.

    Any and all parties who have a vested financial interest in the outcome of an evaluation product should be separated from the Valuation Process. Such actions would go far to protect lenders, investors and borrowers from collateral being under/over valued.

    Many properties today being “assessed” for market value using BPOs – due to oversupply of inventory. In more volitile markets they are being blatantly under valued causing further declination of property values.. This is primarily due to interest in procuring an expedient sale. Which equates to a Realtors commission. How can, when considering the financial interests involved by those doing these “assessments” they be considered objective, unbiased values. Objectivity is highly suspect, – to think otherwise is absolutely naive and disingenous.

  15. Mark Hastert

    As an appraiser I cannot sell houses. Realtors should not be making valuations. An appraiser has to have 2500 hours of apprentice training and a years worth of classroom training plus 14 hours every year in continuing education. Brokers have zero training in valuation.

  16. RDePiro

    BPO’s aren’t worth anything. Enough said. They are classified as a valuations, therefore, an appraisal. An estimate of value should be obtained by a disinterested third party. BPO’s cant be justified and are adding to the problem of incompetent professional opinions in the appraisal practice that exists already. The state has made their presence known by adding to the requirements of appraisers already only to be undercut by allowing BPO’s to even exist. The banks made these up as a cost cutting and procedure cutting tool.
    I get 100’s of request a week for BPO’s at $45 for an interior inspection. That’s a crime and I laugh as I reject them. You think they are ordering them local, please. I get orders from states that I am not even licensed in, let alone practicing. Those of you who are completing these BPO’s without E&O insurance are asking for trouble. Those of you who are under the impression that you are covered by your Brokerages are sorely mistaken. The person who said he does BPO’s for free to get REO Listings is a violation of the ethics code of USPAP. Half of the people who are reading this or completing BPO’s are Googling USPSP right know to find out what it is.
    I welcome all Real Estate professionals to go through and obtain their state license, get training and know what you are doing. Until then, you are no better then the appraiser you complain about.
    PS. I am a Real Estate Agent and Certified appraiser for the past 18 years. Best wishes to all.

  17. Chuck Robertson

    Speaking strictly to the NAR President about his comments on BPOs being legal in every state for a third party to use, that is definitely not the case in Alabama. We are a mandatory state when it comes to preparing an opinion of value. It is mandatory that anyone preparing an opinion of value in a real property transaction be a licensed or certified appraiser and under the control of the Alabama Real Estate Appraisers Board. The only exception is a Broker offering an opinion of value to a potential listing client, or a current client about to buy a property – not to any third party that is not a party to the transaction. The General Counsel of the Appraisers Board sends out cease and desist orders quite regularly and the General Counsel of the Alabama Real Estate Commission has issued an opinion concurring with the Appraisers Board and has warned brokers and salespersons in this state to not do BPOs for lenders or be in violation of license law. Yet lenders still hire brokers and brokers still do them.

    The NAR President in his letter pointed out that Realtors are bound by our Code of Ethics. Let me point out that encouraging Realtors to break the law in their state is not abiding by the Code nor would brokers who broke the law be abiding by the Code. Maybe there should be an investigation.

    I am a Realtor, a Broker and a Certified Residential Real Property Appraiser. I have seen BPOs that are jokes and I have seen appraisals that are jokes. That’s not the point. NAR has several designations and certifications for specific areas of practice to demonstrate expertise in that field, appraisal included. Appraisal is a specialized area of real estate practice and only someone trained in it should be out there practicing it. It’s like FSBO homeowners thinking they can do everything a Realtor can do on their own. Maybe they could, but it’s highly unlikely. If you want to provide valuations services, then get trained and certified!!!

    BTW, I’m also a member of our local Real Estate Investors Club and I hear over and over how the potential buyer met the BPO Broker at the foreclosed/short sale property and how they influenced them to come in low, so they can buy the house cheaply. If you don’t know what you are doing, you can be easily influenced by someone who seems to know more than you do. It’s great for the investor, but not for the owner or the poor Realtor who has listed the property for their client.

    I don’t know when the craziness is going to end, but I hope that it ends soon. Many of the best appraisers have left the mortgage business to do other things in appraisal and that just leaves more of the dregs of the profession who will do appraisals for any crumb they can get – and you get crummy appraisals. That’s also why deals are falling through. I could go on and on…but it’s late and I have to get up early to go to my part-time job that helps pay the bills.

  18. JNFLA

    I have been a licensed realtor for 11 years and the owner of an appraisal company in which I manage – my husband is the appraiser. Sorry folks realtors due not belong doing BPO’s there is no formal training and no LIABILITY they are killing the appraisal industry. I know the time, effort, and liabitlity that goes into an appraisal there is no comparison. Borkers are opening BPO factory’s hiring people off of Craigs List to do BPO’s when they themselves could and would not ever complete and sign an appraisal if they knew the liabilitiy. I have sat in on several brokers training people to do BPOs it’s a joke and to think that loans, refis, foreclosures, and loan mods are being done using BPOs is really scary. As an earlier post I read stated, “many properties today being “assessed” for market value using BPOs so agents can get REO Listings” thats exactly whats happening.

    The mortgage industry has only began to see its down fall.

  19. R WEST

    All of the above appraisers and brokers are correct. Appraisal should be left to appraisers, however when a homeowner decides to sells his/ her home, they do not call an appraiser to price it, market it, or even sell it. They do call there local real estate broker (salesperson) to give them a good idea of what the home should sell for. They rely on the very same people that all the above real estate appraisers and AI are saying are incompetent, and this has been the process for years. AMAZING!!!

    Furthermore, aren’t (as much as I don’t like it) banks/ financial institution no more than homeowners trying to sell properties. If so, don’t they have the same right to information as any other person attempting to liquidate an asset, or should they be subject to only one point of view, no matter how narrow it might be.

    The idea of BPO’s is not to value the asset, but to determine a reasonable price for which the holding party can dispose of it. It is as simply as buying a rookie year vintage 1969 Amazing Spider Man Comic off e bay. Had the seller wanted value for the item he/ she would have order an appraisal of the item to determine its true worth, however there goal was to dispose of the item in the quickest amount of time possible, so they settle for less base on a book they bought at Barnes and Noble. Yes, the seller lost out on potential gains, however they accomplished there goal, which was disposition of the asset.

    Lastly, the one thing that all of the above people, AI, and NAR are all forgetting, is sum up in one word “choice”. THE choice in how to run their business, choice in how to dispose of an asset, choice in what value/ price they want to accept. They do not have to use any of us for there own internal results and decision; they could simply (as one person point out) rely on Zillow, or Google earth. With that, yes they still would need an appraiser when a potential purchaser came along, and they still would need a salesperson/ broker to sell/market the asset, however the decision would have been made, and not real estate agents or appraiser would have had any so say in the price/ value they determined. So in the end we should all be thankful, that we have some type of market to work in. Because for now the rules of the game have change, and (as much as I hate to admit it) the BANKS are in CONTROL

  20. I recently viewed a BPO prepared by a Certified Residential Appraiser. He was located 250 miles away from the subject property and stated that all information had been collected via the internet. I don’t know if he was a member of the local MLS or not. He never visited the property and stated so.

    The property in question was mortgaged for $225,000. His value range was $50,000 to $80,000, with a probable value of $65,000. That local market has fallen even more in recent months.

    The loan modification group was paid $5,000 for their services.

    The proposed loan modification, when offered, proposed the payments to be reduced by about $700/month and when you do the math caused the borrower to be paying on $170,000 principal debt for the next 30 years. Or in plain terms that payment implied that the property be valued at $170,000 on the date of the loan modification.

    I had three questions: 1. Where did the borrower get $5,000? 2. How can a certified residential appraiser lawfully do a BPO without violating USPAP? 3. What borrower in their right mind (as opposed to being well informed) would saddle themselves up to such an agreement in this market?

    Overall, why didn’t the powers that be let the free market crash to the ground, and then rebuild the market from a solid foundation?

    And, according to published reports Fannie Mae has over 80,000 homes in this state in a state of limbo until the market corrects itself. Whose bacon is being saved at the expense of the American Taxpayer?

    We need to go to basics. Let the realtors sell, let the financial institutions lend, and let the appraisers do their jobs for a proper compensation.

    Former Secretary of the Fed said on television that he had over 250 doctorate mathmaticians and his disposal and they couldn’t figure out what the rating services were doing.

    Warren Buffet (whose holding include 40% of Moody’s rating service) stated that if you needed a calculator to figure out whether or not to buy real estate, you better leave it alone.

  21. R Jenson

    Upon losing faith in appraisals, I discovered how to determine the real value of a home. If very few realtors with buyers call on a listing then the supposed value is too high, if too many call it is too low. The exact value turns out to be what a willing buyer and a willing seller come to agree on. I adjust the price up or down depending how fast the seller wants it to be gone and how many realtors want to show it. The current market determines the value. I know,.Radical. Can banks do that?