[quote=HLS]Your anger is justified, but misplaced.
An appraisers job isn’t to give their opinion about a shack in da hood, it’s to report what the previous fool paid.[/quote]
Bzzzt, sorry … no.
Here’s what the FHA has to say in their appraiser’s handbook:
D. ECONOMIC TRENDS
The appraiser must give consideration to, and include in the value analysis, the economic trends of a neighborhood and the general area, including:
price and wage levels (the purchasing power of community occupants)
employment characteristics
the current supply and demand for residential dwellings, including projects under construction
taxation levels
building costs
population changes
activity of real estate sales market and mortgage
interest rates
No, the FHA isn’t the whole market. But I doubt they are out of step with prevailing (and mostly theoretical) professional standards.
I agree with you that in practice appraisers try to find whatever comps will support the desired value, but to just “report what the previous fool paid” is a clear violation of professional standards and ought to result in loss of license.
