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According to the National Association of Home Builders (NAHB), it’s not the economy, stupid. It’s not those avaricious lenders of sub-prime loans to unqualified buyers. It’s not exotic hedge funds. Nor is it government regulators.
No, it’s. . . appraisers!
Get this from an NAHB press release this week (and just wait until you read the last paragraph of the release, in boldface way below):
“Using foreclosed and distressed sales as comparables with appraisals on single-family homes without adequately reflecting the differences in the condition of the respective properties is needlessly driving down home values.”
That’s the lead paragraph. The release then quotes its chairman of the board, whose photo is below. Says Joe Robson, a home builder from Tulsa, Okla.:
“Any home buyer can recognize the difference between a well-kept home and a distressed property that is damaged or not properly maintained. So it only makes sense that an appraiser should be required to consider the overall condition of a property and the specific factors related to a foreclosure or distressed property sale when selecting and adjusting the value of comparables.”
If you are buying or selling real estate, this is an issue that you’ll discover runs close to home. One reason Continue reading