Samuel Miller, in his Matrix blog, has hit on a qustion that all appraisers must deal with . . .
Q: One of my pet peeves for years has been how appraisers are given the house contract before they appraise the house. Why is that, other than the fact he needs to make sure that his valuation comes in close to the contract price, otherwise the deal is off and he won’t get any more business from that real estate and/or mortgage company? Appraisers should be above this. -Timothy Murray, certified financial planner, Chantilly Va
Mr. Miller ran across that Q&A at MarketWatch: How fair are appraisers who already know home price? and "got very annoyed at the assumption made by the person posing the question, stirring up an already healthy dose of irritation at the predicament my industry is in."
Here just a few of the issues the Samuel Miller addresses in his full post:
- Do you think that the appraiser can’t find out what the sales price is without viewing the contract?
- Are you aware of the laws that mandate appraisers review contracts?
- Don't you understand that appraisers need to know who the parties are?
Do you understand the possible "valuation precision" consequences when operating in a blind-sale scenario?
"So is the issue resolved by hiding the price from the appraiser? Of course not. It may make you think that you have made the appraiser unbiased. But that’s incredibly naive."
Recent Comments