Pointing the finger at someone else seem to be very de rigueur these days. It seems the “drive-by” media’s next target is the home appraiser. It’s really just one more way to blame someone else. In my opinion, a house should not need an appraisal. An appraisal is for the bank. A house is worth whatever someone is willing to pay and someone else is willing to sell it for. You don’t even need an appraisal if you are not getting a loan. Should an appraisal be paid for by the borrower or the lending institution as it is only there to protect the bank from losing money? Buyers don’t pay for an appraisal on a car, a vacation package or an appliance as they are priced at what the market will tolerate. They are worth exactly what someone is willing to pay for them. It’s basic business; things are worth what you can sell them for at that particular point in time.
Homes are worth less now than they were last year, which is not the historical trend but, if you bought gold today, it is not set that you can sell it for the same tomorrow. Tell us what you think of blaming the appraiser and who do you think will get the blame next?
Credit: The Appraisal Bubble