Typically, this sort of demand/supply imbalance would lead to bidding wars and increased selling prices. But, not now. The bidding wars are there but not the appraisals to support the higher prices. Buyers who are willing to pay more are being rejected by institutional sellers in favor of lower priced buyers out of apprehension that the property won’t appraise. So much for the free market setting prices.
San Diego is getting its first taste of government intervention in the real estate industry, and for buyers who are losing out and to other property owners whose home values are being artificially depressed by new appraisal laws, it’s just another reminder of how completely ineffective government has become.
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So…where was this clown when prices were ramping up because of all the fraud? Was he complaining about the appraisers then, or was he “helping” them understand why a house should appriase for $100K+ more than it sold for only three months before?
He needs to understand that the appraiser’s job is to protect the lender, meaning the final bag-holder, and NOT the originating broker/lender.
If there’s one thing that the govt got right, it’s removing the originating/commision-based parties from the appraisal process.
