Appraisals, for all their importance in getting a mortgage and buying a home, seem to be rather nebulous. This past weekend, The New York Times ran an article pointing out several gray areas in the art of appraising. First of all, a change in the Home Valuation Code of Conduct that took effect back in May gave banks exclusive power over the appraisal process. The plus side, and intent of the change, is that brokers, builders, and buyers cannot influence the appraisal as much; the down side, according to some appraisers in New York, is that banks are using national appraisal firms that assign appraisers who charge lower feesâ€”i.e., less experienced appraisers who are likely unfamiliar with the local market, something which is essential in New York City’s market of microscopic subclimates. It is common, of course, in a down market for appraisals to come in low, but the combination of inexperienced appraisers and fewer data points due to lower volume might result in inaccurately low valuations. Buffalo News made a similar report about the appraisal industry upstate, and CNN Money reported that the housing industry met with New York Attorney General Andrew Cuomo last week to protest the current Code of Conduct, and the attorney general’s office agreed to consider the matter further. The primary sources for these articles are brokers and local appraisers. We’d like to hear from other players in the game, as well. Any bankers, buyers, or national appraisers out there who want to throw their hat into the ring?
New York Appraisals Get Shortchanged [NY Times]
Tougher Appraisals Make Home Sales Harder [Buffalo News]
Housing Industry to Cuomo: Let’s Work Together [CNN Money]
Photo by Richard Wanderman
Brooklyn, one building at a time. Name: Scranton & Lehigh Coal Company Garage Address: 239 Nevins Street Cross Streets: Corner…
A Salvation Army thrift store is opening soon at 1239-1243 Fulton Street, between Bedford Avenue and Arlington Place in Bed…
An Open House Pick in November, this attractive Park Slope brownstone at 763 Carroll Street is still on the market….
The owners of this sixth-floor co-op at 9 Prospect Park West have been trying to unload the three-bedroom pad for…
The interior of 184 Lefferts Place has been totally gutted but the flip is more luxurious than most. Recently for…