Real estate agents less critical of appraisers
WASHINGTON – May 19, 2014 – In 2010, the National Association of Realtors® (NAR) conducted surveys that found more than 40 percent of respondents saying they had problems with appraisals. But today, realty agents say the appraisal landscape has improved somewhat.
In 2010, Realtors said appraisers too often used bargain-priced foreclosures and short sales as "comparables" for valuing houses that were not in financial distress.
In addition, NAR membership complained in 2010 that some appraisers traveled far beyond their area of geographic competence and, when they did, were out of touch with local market conditions.
Worst of all, critics said too many poorly trained appraisers that had flooded the industry during the boom years were getting the bulk of the valuation assignments from appraisal management firms.
In the most recent survey, however, NAR pollsters found that the share of members reporting major issues with appraisal results was down to 24 percent. While that is still almost a quarter of all agents in the sample, it's a substantial drop from just a few years ago.
Pat Turner, an appraiser in the Richmond, Va., metro area, said the sheer number of appraisers has plummeted in the past few years "and a lot of the less-competent, poorly trained [ones] have left" the business in the wake of the Great Recession.
Source: Los Angeles Times (05/18/14) Harney, Kenneth R.
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