Bad Appraisals Would Not be Low Appraisals
The National Association of Realtors (NAR) is unhappy about new regulations that require that appraisers be picked independently of the realtor or the bank issuing the loan. The NAR complains that the appraisals are being driven down by inexperienced appraisers who don't understand the local market in which they are evaluating prices. If true, then it would be expected that there would be more variation in appraisals, but there is no reason that appraisals should come in consistently low. There is no reason to believe that these appraisers would have a bias towards issuing low appraisals.Once again we have the villian admitting publicly that the game is rigged and corrupt.
THINK about it. Appraisals, by definition, should be almost mechanical, driven by a code of generally accepted and uniform rules.
The fact that the NAR is so intensly interested in controlling the appraisal process is like a siren going off. The NAR is concerned that without control of the process, independent price discovery may blossom and the "free market" may actually have a chance of working.
NO more bubbles?
2 comments:
Latest RealtyTrac numbers show 355 Hoboken properties getting behind in their payments. Pre-foreclosure is a technical term but any idea what percentage of these statistically becomes real foreclosure material? Where do these numbers show up in the listings? This is more than shadow inventory perceived! That would be a telling sign for this coming year.
At end 2009, NJ ranks 14th (1 out of every 55) among states and climbing.
Last night's election result in Mass. will soon be realized as a big negative for real estate inducement. We are now less likely to get any stimulative policies allowed out of DC that would have otherwise goosed the property market through another round of quantitative easing or tax rebate programs. These were real possibilities given the trends in employment and household wealth. The tolerance for such measures was already waning. Now they're probably dead on arrival!
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