I was letting it slide...
I was gonna let this slide....
I stand by the content of my statement, though my language may have been a little extreme. There are surely skilled and honest residential appraisers out there. Unfortunately there are just as many unskilled quacks, and the industry doesn't make it easy enough for an average residential property owner to tell the difference.
Because there was a bit of an apology included. But
You went on...
Many pf the "appraisals" people tell me about aren't really apraisals at all. Usually they're the (biased or unfounded) opinion of a realtor or a broker, not a true appraiser. The "appraisal report" is dressed up to look like an actual appraisal, but doesn't have the research and justifications that a true appraisal would have. This practice is dishonest, unethical, probably illegal, and very common.
Uh, I'm a Realtor. You may be mixing up what's commonly called a "market analysis" with a paid appraisal from actual licensed appraiser. Both are opinions of value. They just come from different kinds of professionals. HOWEVER, lenders only accept the latter.
I am very careful NOT to call what I do an appraisal, it's not. BTW, I would quickly lose my license if I was "dishonest, unethical probably illegal" and was so commonly. Grasshopper, you really do need to apologize now.
Now, regarding my opinion of property value, I do much of the same work an appraiser would commonly do to approach/justify it. Besides, it would not be in a client's best interest to recommend a value too low, would it? Conversely, if I recommended an ammount too high, the property wouldn't sell, and if it did sell it probably wouldn't appraise for that value, which is also not in the client's best interest. One more thing, because I may be more familiar with an area I work in, my opinion might even be better than an actual appraiser's might be.
For example, the appraiser would look at comparable properties but would probably only drive by when I've actually been in them, and could explain a difference in value. As a matter of fact, at least where I've worked, it is common practice for Realtors to provide our own list of comparable properties for an appraiser and then explain why there might be a difference.
And, you just couldn't leave it alone...
I've not studied the requirements in depth, as I have no interest in becoming an appraiser. But my exposure to the industry has led me to believe that many (not all) residential real estate agents tend more towards unskilled when it comes to appraising a property. Most mortgage companies have no trouble securing an "appraisal" for a property that gives just about any value they need. It's just a matter of finding the right "appraiser".
Uh, Realtor's opinions, or "Market Analysis" or whatever are FREE. Sure a property owner could pay for an apraisal prior to listing his property, but why? There's gonna have to be a licensed appraisal to get a loan to close in most cases anyway. Also, appraisals are usually a buyer's expense. It's much more effective to just interview several Realtors.
There's also a possible downside for a seller. If his appraisal comes in low, it then becomes a material fact and must be disclosed in writing to a buyer during a transaction in many states. If disclosure is not required it would still be unethical, which professionals are actively discouraged from being. Now, with all your experience you may think this particular paragraph is BS. It's not, and I've got more than 20 years of experience to back my statement up. Just ask any of your appraisor buddies which will come in at a higher dollar value, a re-fi appraisal, or a purchase appraisal?
In a loose money market where lenders have to compete and RE prices are rising, an appraiser is often a bit more liberal with his opinion for a purchase money loan. Of course the opposite is true for a down market.
BTW, my RE experience has mostly all been in California, which is about the most tightly regulated and policed area a Realtor can work in.
Did I piss on your profession, or possibly a lack thereof?
Lastly, it is very common in areas apparently more blue than yours to have significant differences between actual property value and ED values. That's where all those pesky lawsuits come from.
--- Now back to the topic:
Maybe you now understand my interest in takings and Emminent Domain cases. This has a direct bearing on not only my kind of business, but property rights for all of us, much of what the original idea our country was based on. IOW, it is a constitutional case.
Takings and ED cases are JUST as important as second ammendment cases. What if SCOTUS waffles on the ED case before it now? IOW, they say the government can continue taking private property for tax revenue purposes as long as it remains "reasonable". Of course this made it all the way to the Supremes because what's been going on is NOT reasonable.
That would be very much the same as SCOTUS ruling that the second ammendment is an individual right, but, in this day and age, it should be subject to reasonable restrictions. For the common good, of course, and we all know who gets to decide what's "reasonable".
You catching on to the importance here?
Thank you.