This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Problems Persist, But Appraisals Are Improving

There have been complaints that AMCs pocket a large portion of the appraisal fee, choose inexperienced appraisers who are willing to work for less money or who are from out-of-town and aren't familiar with the neighborhood, Grabel says. All these ultimately affect their valuations.

Borges counters by saying that AMCs have been around a long time, and there is an important place for them in the industry, but trade organizations -- like the Appraisal Institute -- do try work against any situation that encourages the use of inexperienced appraisers.

Appraisals have improved

Despite some setbacks, things aren't as bad as they were a year or two ago.

According to Grabel, for neighborhoods with increased real estate activity, it's easier to find recent sales prices for comparable homes, so the agreed upon price between buyer and seller is more likely to be in alignment with the appraised value.

Read: Lenders and appraisers are catching up with green homes

"In the more condensed areas where there are lots of sales, I am typically more confident of getting a good valuation," he says.

Diane Saatchi is a senior vice president at Saunders Associates, a real estate firm in Bridgehampton, N.Y. She says that sales activity is picking up, and that can only make it easier to find more accurate appraisals in the future.

"Within the last six months or so, the appraisals haven't hurt deals," Saatchi says. "We have a lot of people who have been waiting for the market to come up from its bottom before they start buying. I think the perception now is it is OK to buy."

Appraisals have always been an important part of the real estate process. As home sales continue to increase, more comps will become available. Agents are confident this will help the value of appraisals get more in line with current prices which can then improve the real estate market for everyone involved. receives compensation from lenders when readers choose to request mortgage quotes. This article is provided by an external partner that is solely responsible for the content.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 -0.41%
FB $117.81 -0.21%
GOOG $701.43 0.82%
TSLA $211.53 -4.96%
YHOO $36.94 2.61%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs