Yes, this is a rant by the pseudonymous Stephen Bishop, but it rings basically true.
For the three houses I have purchased, the “appraisal” miraculously landed precisely on the purchase price. To the penny.
What a farce! Clearly, the appraiser decided that with 20% down, it didn’t much matter what the comps said. The appraisal price was what the purchase contract was.
When I asked about that, the standard answer was, “Oh, the market is the best appraisal.” Ha! Then who needs an appraiser?
I think one of the real problems is the inherent conflict of interest in an appraiser who is paid by one entity (the buyer) but is technically representing another entity (the lender). I now know to hire an independent appraiser in addition to the bank-specified appraiser.
Although this article is a rant-and-rave, the author makes some good points.
