{"id":2752,"date":"2008-03-12T16:10:46","date_gmt":"2008-03-12T23:10:46","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2752"},"modified":"2008-03-12T16:16:40","modified_gmt":"2008-03-12T23:16:40","slug":"appraisers-the-latest-target-in-the-circular-firing-squad","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2752\/appraisers-the-latest-target-in-the-circular-firing-squad\/","title":{"rendered":"Appraisers – The Latest Target In The Circular Firing Squad"},"content":{"rendered":"

The Blame Game – Go Find A Scapegoat And Pin The Tail On Their Donkey <\/strong><\/p>\n

Pundits pontificate about the reasons that the real estate market is in a shamble, and the latest target in their crosshairs is appraisers.<\/p>\n

“Those crooked appraisers jacked up the values of the properties!”<\/em> they scream.<\/p>\n

Last night, Jonathan Miller, CEO of Miller Samuel Real Estate Appraisers and Consultants<\/a>, was on the Glenn Beck<\/a> show. Miller agreed that there are fundamental problems regarding how some banks award appraisals to appraisers… and that roughly 80% of appraisers are “in the tank” for the banks.<\/p>\n

While I have the greatest respect for Mr. Miller, I don’t believe that the problem with appraisers is so wide-spread. Perhaps in Manhattan – where Mr. Miller specializes – but I don’t believe that 80% of the appraisers nationwide have been corrupted. I do, however, agree that the process could use reform.<\/p>\n

Let’s look at the role of the appraiser. S\/he is in the business of providing an opinion of value… not a guarantee of value.<\/em> Their services are NOT required by real estate law – but rather as a requisite of most lenders. Their job is to safeguard the lender from fraud by assuring the lender that the collateral for the loan is sufficient.<\/p>\n

In a rising market, an appraiser takes recent sales into consideration… but must also allow for a free market causing the values to rise. After all, what is a better indicator of market value than a willing, ready and able buyer who places an offer on the table? Is that not the true definition of market value?<\/p>\n

I have seen many transactions that are questionable<\/a>, but the vast majority of them have been well within the acceptable range of value, IMHO.<\/p>\n

While there have been – and still are – instances of fraud involving appraisers, these instances have been the exception and not the rule… and certainly not the reason for an over-exuberant run-up in real estate prices.<\/p>\n

In reality – there is no single factor that you can attribute to this mess.<\/strong><\/p>\n

No, ladies and gentlemen, the fault does not lie with the appraiser. In Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Blame Game – Go Find A Scapegoat And Pin The Tail On Their Donkey Pundits pontificate about the reasons that the real estate market is in a shamble, and the latest target in their crosshairs is appraisers. “Those crooked appraisers jacked up the values of the properties!” they scream. Last night, Jonathan Miller, CEO […]<\/p>\n","protected":false},"author":13,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,26,5,10],"tags":[],"class_list":{"0":"post-2752","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-investment","7":"category-lending","8":"category-real-estate","9":"category-realty-reality","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":921,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/921\/are-appraisers-being-pimped-as-involuntary-seeing-eye-dogs-for-the-congenitally-blind-avms\/","url_meta":{"origin":2752,"position":0},"title":"Are appraisers being pimped as involuntary seeing-eye-dogs for the congenitally blind AVMs . . . ?","author":"Greg Swann","date":"January 21, 2007","format":false,"excerpt":"From this morning's Boston Herald:Appraisers have resented AVMs for years, in part because the computer estimates have cut into appraisal companies\u2019 business. But the industry also challenges AVMs\u2019 accuracy - especially in today\u2019s market, where prices in some locales are falling rapidly. And now, some firms claim a key industry\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":18292,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18292\/overnight-news-too-few-black-appraisers-theres-an-avm-for-that\/","url_meta":{"origin":2752,"position":1},"title":"Overnight News: Too few black appraisers? There\u2019s an AVM for\u00a0that!","author":"Greg Swann","date":"July 7, 2021","format":false,"excerpt":"At the middle of the bell curve, appraisers are nerdy introverts who, for whatever reason, didn't get college-tracked in high school. Low-status nerdy introverts get picked on in school, and low-status nerdy introverts going to majority-minority (a masterpiece of modern ambiguity!) schools get persecuted. They get short-circuited out of high\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":8458,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8458\/the-139250-appraisal-fee-or-how-the-home-valuation-code-of-conduct-rewards-inefficiency-at-the-expense-of-the-consumer\/","url_meta":{"origin":2752,"position":2},"title":"The $1392.50 Appraisal Fee or How the Home Valuation Code of Conduct Rewards Inefficiency At the Expense of the Consumer","author":"Brian Brady","date":"May 15, 2009","format":false,"excerpt":"Have you heard of the Home Valuation Code of Conduct?\u00a0 New York Attorney General Cuomo forced Fannie Mae and Freddie Mac to adopt the measure, in what can only be described as a Machiavellian scheme.\u00a0 Essentially, mortgage brokers are forbidden from direct contact with residential appraisers; all appraisals for agency\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1320,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1320\/idle-chatter-of-idle-neighbors-to-be-outlawed-in-arizona-appraisers-job-protection-act-passes-arizona-state-senate\/","url_meta":{"origin":2752,"position":3},"title":"Idle chatter of idle neighbors to be outlawed in Arizona: Appraiser’s job protection act passes Arizona State Senate","author":"Greg Swann","date":"April 18, 2007","format":false,"excerpt":"Little Pink Houses dug up the smoking gun: The State of Arizona is trying to make it illegal for anyone without a state-issued license to express opinions of value about real property. Oh, there is an exception: You will be able to express an opinion about the value of your\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1360,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1360\/east-valley-tribune-slams-board-of-appraisal-over-zillowcom-censorship-endorses-reagan-amendments-to-sb-1291\/","url_meta":{"origin":2752,"position":4},"title":"East Valley Tribune slams Board of Appraisal over Zillow.com censorship, endorses Reagan amendments to SB 1291","author":"Greg Swann","date":"April 27, 2007","format":false,"excerpt":"In general, newspapers influence people who are paying attention, a small but inordinately important minority. 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