Mike,

I have noticed the same thing.  I had an investment property of mine refied recently and the appraiser cut my appraisal (on fixed up value) substantually.  It didn't affect my loan any but pissed me off.  To top it off, this appraiser is a crook that I have seen over appraise other rental properties 200%

I called up the loan officer and told her I was unhappy she was using this guy and told her my other experiences with him.  She was not totally shocked.  Come to find out he is on a few of her lenders "Watch list"!

It's all cyclical. 5 years ago, we couldn't get anything to appraise, then it all did, then out of control, now nothing does. It will iron out. Meanwhile, be prepared to challenge and prepare buyers to probably have to pay for more than one appraisal.

I had my share of experience with this couple months back when we refinanced our house. We bought it little over a year ago quite undervalued (that's why I wrote a full price offer on it before the sign was even up ... came on the market Friday and I put a condition on for the seller to sign it by Saturday 9:00 am ... take it or leave it) ... and the appraiser didn't want to take any of this into consideration wanted me to show him all the improvements we did to now ask for $47 000 more ... the first appraiser wouldn't appraise it near where we should be ... the second one did ... after I supplied the comps they couldn't find.

I think the appraisers work for the lenders. Plain n' simple. If they appraise a property to high and the seller finds out he wants to back out of the deal. If they appraise it to low and the seller won't budge on the price then the deal falls apart.

If the appraiser continues to shut down deals for the lender...wala...new appraisers show up for that lender and the out with the old!

Hmm? Bias? HA!

Maybe I have just been doing all my deals within a few thousand of the appraisal? Man I must be better at this home evaluation than I think to have the homes I am assisting to sell come within that close of appraisal price. HA!

BIAS? UNBIAS? One must wonder.

Scott,

I disagree.  Appraisers work for THEMSELVES and that is it!  If a Realtor or Mortgage Broker has a good report with an appraiser and tells the appraiser they REALLY need this to work, what do you think the appraiser does?  The make it work!  

There is a real estate company in town that the Principle Brokers girlfriend is an Appraiser and his brother is an investor and they also have inhouse lending!   Hummmm  Does that sound like conflict of interest??  I have seen many foreclosures that were homes that they flipped that should of never appraised for what they did.

I hope she is mistaken Mike.  Have you checked the comparable to see what she might have seen.  We had just the opposite on our Via and it is making it hard to convince the lender we need to go lower not higher.

Jana

Here in Indianapolis, the land of foreclosures, I am seeing more appraisals come in low. I think Candice hit the nail on the head when she said it is cyclical. I just make sure my CMA is the best I can make it and educate the seller about appraisals and how they will affect the deal.

Hope she missed something for your sake. Hope you go to closing.

Mike this is going to be a problem. When prices were running up they took old listing to make their appraisal and diminished the new sales. Now they are taking listings and diminishings the current sales. Sometimes it seems like a lose / lose situation. I have appealed to them and won but they seem to adjust to the market and right now it is against you! Good Luck!