As if it was not bad enough that the mls is rigged, the appraisal system is also. We have been hearing for a long time that deals are falling through because of low appraisals. Now the consumer protection bureau wants to get involved. They want it to be law that you see:
1. all houses used
2.what kind of license the appraiser had
3. how much of your fee actually went to the appraiser
4.Is the appraiser local
5. Did they use a computer or actually saw the house
Its important to know this . The NAR reported that 33% of all appraisals were a problem. Because the appraisers are receiving such a small part of the fee, you get inexperienced appraisers who don’t the area and tend to count distressed sales as part of the comps.
In addition, many think the banks are purposely doing this to keep appraisals low so they can keep the loan low to protect themselves.
I am getting my sign and going out on Torrance Blvd to join the activists. Sometimes i wonder if it matters who wins the election.