subject: Appraisers lowball Everett real estate [print this page] Author: James A Johnson Author: James A Johnson
Appraisers should be independent from banks When a captured appraiser sites the value on Everett real estate is it an honest market value? If the appraiser gets his work from the bank how can he give a true arms length valuation? A captured appraiser is one working for an appraisal management company. What they dont tell you is that the major lenders own the appraisal management companies. Since the lenders now pick the appraiser they figured out that there was a huge revenue stream just waiting to be tapped here. They hire barely qualified to not qualified appraisers and pay them about half of what they used to receive. The appraiser is not stupid and realizes that if his appraisals lead to bad loans he gets fired. So he lowballs the appraisal. The client still has to pay for this junk so the bank makes a few hundred dollars even if the deal doesnt happen. We can thank Mario Cuomo for this. I must say this is pure speculation on my part. I have not a shred of proof. But this all fits so nicely that it simply makes to much sense. Mr. Cuomo has big political aspirations. First he wants to be governor of New York State and then I think he wants the presidency. Mr. Cuomo knows that to run for big time offices you need big time money. His desire for the governorship is well know. If the Wall Street banks back him he is half way there. Watch he will win this Novembers New York governors race. If you follow the HVCC story you will know I am on the right track. HVCC is the home valuation code of conduct. This is another political boondoggle sponsored by Mr. Cuomo. But lets look at it from another angle. When valuing Everett real estate should you include distressed sales in the mix with non distressed sales. If you include a foreclosed home that sold on the court house steps is that a fair comparable to a regular arms length sale? Personally I think not. The facts back me up on this. A new analysis of foreclosure and non-foreclosure sales by Zillow.com found that even when most of the market is made up of bank-owned homes, non- foreclosures sell for as much as 30 percent more. Another study by Harvards Joint Center for Housing Studies came up with a similar conclusion. Now you say well the banks are not making any money if the mortgage doesnt happen. Well guess again. Look for headlines in the next few days. Bankers will be receiving 6, 7 and many even 8 figure bonuses. If I wasnt as old as I am I would change my profession. Right now there is no money in Everett real estate. There is in ripping off the US taxpayer. My friend ever day some faceless bureaucrat or some noise some politician is stealing your liberty. Every day they take a little here and a little there and some day you will wake up and see your freedom gone. When will you finally get pissed off enough to do something about it. So the question remains do appraisers lowball Everett real estate? Jim Johnson and comments are always welcome. Everett Mortgage on Line About the Author:
Jim Johnson E.A. retired; (Enrolled Agent, licensed to practice law in tax court) BS -19+ year experience as an independent loan officer. 15 years as an Enrolled Agent Licensed to Practice law in tax court, Real Estate Agent 15 years, BS Accounting, Economics University of Wisconsin - Milwaukee.
In 2009 I ran for mayor of Everett, WA I lost with 30% of the votes.
Currently I offer local political commentary in KSER Radio 90.7 FM every Wed at 9:05 AM.
