Home Appraisal Industry is in the News

Right now people are looking at the home appraisal industry since the Associated Press and other group turned a critical eye on home appraisers.

In this less that stellar real estate market, appraisals are being increasingly important. Most lenders want to see the results of an appraisal before they will agree to give a buyer a loan.

Note that an appraisal is not a home inspection. Home inspectors are more concerned with function--does the air conditioning system work properly, will the drainage system drain rainwater as it should? An appraiser is looking more at form--how many square feet, how does this home compare to others on the market? Home inspectors are concerned with you ability to live in a home after you buy it. An appraiser’s work is more connected to the actual sale of the home.

An appraiser is tasked with making sure they come up with an unbiased assessment of a home’s market value. Unfortunately, some appraisers say they have been pressured by a bank or a real estate agent to assign a home a higher value than it may be worth.