Cohousing-L Mailing List: More on appraisals

[Rob Sandelin (robsan]

Hungerford, David"  <dghungerford [at] ucdavis.edu> Said about appraisals: 
I've picked up on this problem in other postings;
appraisers just don't know what to do with cohousing, but they make
judgements anyway, usually in the direction of undervaluing the market.  I've
always thought that the value of something was what the buyer and seller
could agree on.  But then again, appraisers (and economists) still believe in
objective truth, especially when it comes to money.


I kind of think there is a general level of incompetance around 
appraisals.  My house cost me 155,000 to build.  The county tax 
appraiser valued my house at 99,000.   The first loan I got the house 
was appraised at 236,000!  When I refinanced my house was appraised at  
199,000.

My neighbor had his house under appraised at 120,000 (It cost 140,000 
to build). He asked for a second appraisal - that came in at 126,000.  
He asked for a third. This time the supervisor came out and appraised 
the  house at $280,000!  I can't beleive these people have the 
slightest clue about what they are doing.

Both bank appraisers which did my house did pretty thorough walk 
throughs. Neither had been appraising houses for more than a year.  All 
you need in this state to become an appraiser is a business card, and a 
connection with a bank.  No experience, training or testing is required.

No wonder appraisals are so lame.