Reported by TampaBay.com
In February, Neumann found his dream home: a lovingly restored, 1936 traditional with garage apartment in St. Petersburg's desirable Woodlawn area. He signed a contract for $375,000, and the lender ordered an appraisal.
The results flabbergasted everyone.
A Tampa appraiser unfamiliar with Woodlawn valued the property at $315,000 — $60,000 less than the amount the buyer and seller agreed was a fair price. Even the normally conservative property appraiser's office showed the house to be worth $331,000.
"I've shared our story with other Realtors who've lost sales due to faulty appraisals since the (code of conduct) was enacted. Appraisal management companies are hiring inexperienced appraisers willing to work for a lot less. They do inaccurate appraisals that are serving to further the blight of the housing market.''
The first appraiser declined comment and it is not known which company hired him. A trade organization defends appraisal management companies, saying that appraisers actively working for its 45 member companies have an average of 15 years' experience.
"It would seem to me that if the average appraiser has 15 years, the likelihood that an experienced appraiser is coming out to do the job is pretty good,'' says Jeff Schurman, executive director of the Title/Appraisal Vendor Management Association.
But, Schurman added, "if anyone asks them to do an area they're not familiar with, they should turn that assignment down.''
The Florida Legislature is considering a bill that would require appraisal management companies to register with the state and the owners to disclose their licensing and criminal histories. A Clearwater man whose appraisal license had been revoked subsequently started an appraisal management company.
via www.tampabay.com
Recent Comments