The low values are happening all over Colorado too. But as you said Tom, one can’t go “appraiser shopping”, I’m afraid that could be considered loan fraud.

Not only that but how ridiculous is it that the first thing the seller and listing agent due is the blame the only guy in the deal with any formal training in home valuation and a license on the line, with “faulty” work.

Could it be that an overzealous listing agent trigger too much seller greed when setting the listing price and now can’t admit their own mistake?

Couldn’t that really be the more likely issue, rather than an appraiser who knows what he’s doing, is what, intentionally under-valuing homes so he can spend the next 4 days fielding calls from angry agents, re-valuing additional comps, and blowing the profit margin on his $350 fee?

I think everyone can figure that one out!

I’ve had some very “candid” conversations lately with listing agents ( with I loathe to talk too, so you know it’s important if I stoop to doing so) who want to question my appraisers work.

I call them on their “market analysis” values that set the price too high setting the stage for the current debacle and remind them of the laws in place now in Colorado against attempts to “influence appraisers or their valuation reports”.

I also remind them of the fact the underwriter reviews all appraisals for “inappropriate adjustments” and has to agree with the valuation. So any attempt to manipulate the appraiser gets caught by an increasing “tight” underwriting slant now that values are trending down. And he’ll have the same problem with the next buyer.

One in the hand, is worth 2 in the bush!

With all that said, I’ve yet to lose a deal on a supposed “low value” scenario. I have had a seller refuse to lower the price and the buyer went elsewhere.

That house is still on the market…some people never learn!