How many times have you had to try to fix someone's situation when they were behind the eight ball because of a BAD APPRAISAL!!! This week we hope to close on a deed in lieu of foreclosure. These people bought this house just 4 years ago for $97,000. Because of a BAD APPRAISAL, they paid too much. If the appraiser was doing his job, or their Realtor did a proper CMA, and the seller was willing they probably would've only paid $92,000 for that house in that market. Fast forward two years of temptations of advertising to "Refinance Your Home" and we get a refi of 100% with another BAD APPRAISAL of $110,000. This may not seem bad to those of you in Florida, California, Arizona, Hawaii, etc. where you were experiencing double digit appreciation, but here in Davenport, Iowa, it was about 3-4% (see the eight ball coming yet?).
Fast forward one more year to a final, and horribly BAD APPRAISAL when these kids were able to get a home equity line of credit for over $30,000! What was that appraiser smoking? With the downturn in the market this past year (about 2%) we managed to get an offer on this property for $100,100 in a very much short sale situation.
My inspiration for writing about this was, Why do Real Estate Agents think they are Appraisers as well??? by Ray Saenz. There are bad apples in the real estate business (just like any field), but what about the bad appraisers? It seems more prevalent in the area of re-financing. Dozens of times I've had to try to bail-out people because of BAD APPRAISALS!
Is anybody out there? Does anybody care?
Surely there are worst scenarios than this out there. When have you tried to help someone out from behind the eight ball? What can we do, as Realtors, to bring about positive change in our industry by promoting fairness and protecting people from BAD APPRAISALS???
For info about Quad City Area Real Estate, please call:
Lucky Lang, SRES®, RFC
Licensed in Iowa & Illinois
Mel Foster Co., Inc., 3211 E. 35th Street Ct., Davenport, IA 52807-2585
Cell: (563) 676-9031
Toll Free: (800) LISTING (547-8464)
Don't let this great Real Estate buying opportunity pass you by!!!