Fleishr

Low appraisals a Major Problem (clearly)

So major, The New York Times has run at least three stories in the past five weeks about the same thing.
The latest installation, printed this weekend, explains the issue like this:

Real estate agents, mortgage brokers and appraisers all say that the low-ball appraisal has become increasingly common in today’s unsettled market. The problem is even more pronounced when homeowners are hoping to refinance a mortgage or get a home equity loan, because there is no current agreed-upon sale price as a benchmark, they say.

It goes on to explain the changes that have come with the Home Valuation Code of Conduct, which changed the way some things are handled between appraisers and banks.

The first incarnation of the story was back on Aug. 19, and dealt largely with the rage appraisers were feeling over the new rules, and how they feel like they’re always caught in the middle of real estate rage. On Aug. 21, another story about low appraisals came in, this time focusing on the buyer.

(My story on low appraisals, by the way, ran Aug. 22.)