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Soundbytes on the Appraisal Process

by Chicago Agent

appraiser-sound-bytes-sound-bites-real-estate“In my opinion, the appraisal process is having a huge dampening effect on a market that is trying desperately to recover to some semblance of normalcy. How will we ever see appreciation again if this continues? ”

 Jim Hourican, INproperties LLC, Chicago

 

“We need to price properties correctly. It’s not 2006. “

Vivi Tamras, Selective Realty Ltd., Chicago

 

“Appraisals are sometimes good! They protect us all.”

Andrea Krinsky, Coldwell Banker, Glencoe

 

“I am a Realtor as well as an appraiser. Although there may be some incompetent appraisers, in my experience, there are far more incompetent Realtors. Realtors need to educate themselves and be familiar with the HUD/FHA appraisal guidelines. In most appraisals I do, agents do not make any repairs until the appraiser inspects the property, which delays the whole loan process. I usually tell the Realtor to look at Appendix D on fha.gov. Realtors need to realize they are a part of the appraisal process also, and should assist the appraiser whenever possible – providing comps, meeting with the appraiser at the inspection so questions can be asked and answered, and educating the sellers about FHA rules and guidelines.

The appraisers do not make the numbers; we report the data, and then provide our opinion based on the data. I think it’s time the real estate industry stops blaming the appraiser and looks at itself to solve any issues with sales, loans and closings! ”

Francie Bulgar-Estrada, Keller Williams, Lincoln Park

 

“Before you blame the appraiser when one of your deals falls through, think about whether you could prove in writing – and under the possibility of sanctions – the value of the property you are selling. Value issues arise due to properties with optimistic listing prices or buyers that don’t really understand the market or the costs to repair that fixer-upper they think they’re getting a great deal on. It could be that the lender or investor is reluctant to lend on a particular property for whatever reason. I have heard stories, while sitting in the broker CE classes, of lenders that are so difficult to deal with that many agents will not recommend them. All parties to all real estate transactions – broker, appraiser, lender and investor – need to look at the overall picture and work together with respect for each of our positions in the process. “

Russell Plocke, Plocke Appraisal Company, Algonquin 

 

“Speaking as a professional appraiser for 26 years, it would be laughable, if it weren’t so sad, what most Realtors bring to me as ‘comparable’ data for their listings. Many are not comparable to the subject at all, but merely sales of higher-priced homes than what the subject is listed for. These Realtors are not interested in comparable sales or listings, but in steering the appraisal toward the highest possible value.”

Anonymous Appraiser

 

“A recent appraisal came in $5,000 below the offer amount and the appraiser was using active comps to price it. How can you use an active comp? You have no idea what that property is going to sell for.”

Rebecca Thompson, Coldwell Banker, Lincoln Park Plaza

 

“This is a two-way street. I hear enough ‘appraisers suck’ and ‘real estate agents suck’ from both sides of this industry. Why not try to be part of the solution, rather than generate more of the problem?”

Anonymous Appraiser

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