The Appraisal Blog

It has been my experience that there is a general misunderstanding of what an appraiser does, what their opinion of value is used for and how much power an appraiser has.  I've had discussion very recently, even among real estate agents, who think that appraisers create value in markets.  This could not be farther from the true.  We report value based on what we see in the market.  Furthermore, our opinions are private.  They are not available to ANY party outside of the transaction and therefore could NOT be used by 3rd party as a basis for a different party.

Take a look at this article for a more detailed breakdown.  Let me know if you have any comments or feedback!



https://www.nar.realtor/magazine/real-estate-news/sales-marketing/how-much-power-do-appraisers-have-over-home-value

Historic rise in interest rates to a 20 year high, "overvalued" home prices in 210 markets, and a 70% increase in mortgage payments is not good.  And it seems like the worst is yet to come.

 

https://fortune.com/2022/10/13/housing-market-historic-deterioration-told-by-three-charts/

I've been seeing the writing on the wall for months ... increased DOM, increased inventory, reduction in list prices, etc.  But as of yet I have not seen an actual decline in values.  I've seen individual sales lower than previous sales ... but one data point does not make the market.  It happens even in rising markets.  Corelogic is now predicting "very high" odds for price drops for most of the nation.


https://fortune.com/2022/10/10/housing-market-updated-odds-of-falling-home-prices-interactive-map/