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How Accurate Are Today's Appraisals?

In today’s St Pete Times I read an article about the value of the appraisal process.  In my opinion, between the inexperienced appraisers, the foreclosures and short sales, lack of knowledge of the area,  many appraisals are doomed from the get go.   It seems we’ve gone from one extreme to the other. 

Many times an appraiser from the Tampa area gets an assignment for an appraisal in Spring Hill or visa versa and should turn it down, but instead accepts it and delivers an inaccurate appraisal due to the fact they are not familiar with the immediate area.  For example, our market here in Hernando County is different from the Tampabay area, which would make sense that “Only” appraisers from the immediate area receive the appraisal assignment.

The numerous foreclosures and short sales also make it difficult to when you have an “At Arms Length Transaction” property.  The appraisers include these type properties in their appraisal even though some distressed properties often need much work.  The comparables used in the appraisal should reveal similar properties that have newer roofs, newer AC/heat etc..

The inaccurate appraisals are adding to the tough market we already have.  Realtors know the market and if your appraisal comes in much lower than anticipated, you can and should have a 2nd appraisal done if the bank agrees to it. 

The “2009 Valuation Code of Conduct” that was enacted prompted hiring of appraisers thru so-called “appraisal management companies.”  Assignments should only be given to appraisers familiar with that immediate area.  That would be a good place to start in making the appraisals more accurate.  Until something is done about this, we will continue to have delayed and threatening sales as the struggling market tries to recover.

Have a Great Day and Enjoy!
Julie Ludovico & Elsie Kempsey
Team Tropic Hernando
“Don’t Let The Sun Set On Your Dreams!”

Published Sunday, April 25, 2010 6:28 PM by Julie Ludovico & Elsie Kempsey

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