Appraisal Institute President Sara W. Stephens, MAI, once again addressed claims that appraisals were killing real estate deals, this time appearing Nov. 19 in the Orange County (Calif.) Register.
The article cited testimony that Stephens delivered in June to Congress in which she said that “We often hear from real estate agents, homebuilders and others that appraisals are 'killing deals,' and/or holding back the economic recovery. These accusations are unfounded and misguided ... appraisals are not meant to simply support contracts — they are obtained to help lenders assess their overall risk. Fundamentally, it does neither the borrower nor lender any good to enter into a mortgage for more than the value of the property.”
Huntington Beach, Calif., appraiser Gilbert Valdez, MAI, SRA, also was featured in the article where he explained the factors that carry the most weight in an appraisal, including location, size and condition. He said that upgrades don't necessarily pay off as much as a homeowner may expect, and also noted the effect of the price gap between foreclosures and standard sales.
“The biggest misconception is we're out there creating value. We're not. We have a mirror. We're going to reflect it exactly the way it is,” Valdez said.
The story also was featured Nov. 25 in the Bend (Ore.) Bulletin.
That story is among the recent media coverage included in the “AI in the News” feature on the members-only section of the Appraisal Institute website.
Appraisal Institute members appearing recently in local media coverage include Sandra K. Adomatis, SRA, Sarasota (Fla.) Herald-Tribune; Shannon Hansen, MAI, Sioux City (Iowa) Journal; and Frank Robinson, SRA, South Bend (Ind.) Tribune.
See the latest media coverage about the real estate valuation profession, the Appraisal Institute and its members. Media coverage at “AI in the News,” found on the member log-in page of the Appraisal Institute’s website, is updated daily and also includes the latest news releases from the Appraisal Institute.