Appraisals roil real estate deals


NEW YORK – June 10, 2009 – A wave of lower-than-expected valuations has emerged as one of the biggest roadblocks for Americans looking to sell their residences, refinance their mortgages or take out home equity lines of credit.

Slammed by losses from defaults, lenders increasingly urge appraisers to be more conservative in their estimates than they did during the housing boom.

Appraising, though, has become exceedingly difficult in this era of fluctuating home prices and slowing sales. Some lenders now require that appraisals be based on sales closed within the past three months instead of the prior six-month norm, while others ask for comparisons with at least one sale in the past 30 days.

Source: Wall Street Journal (06/09/09) P. A3; Hagerty, James R.; Simon, Ruth

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