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I'm getting quite an education on the home appraisal racket, er business.
"The appraisers are doing their best to determine what an "average" buyer is going to pay for the properties, and it's a bit of a guessing game because every buyer and every house is so different."
The potential buyer has to pay $300 -$400 a crack for professional guesses? How many guesses are enough?
" The appraisal process is generally too simplistic to determine a real value. Plus, the appraisers that I have known really didn't have a sufficient understanding of house construction and construction/renovation/repair costs to really understand what they were doing."
Sounds like these highly paid professionals don't know what they're doing, but they get paid anyway, and paid again if the lender doesn't like their work.
"One other thing too: the methodology that the original appraiser used may have been a bit lenient compared to what the lender wanted to see."
So if the lender doesn't like the outcome it's OK, he can just spend more of the buyer's money, roll the dice, and see if he gets a better number?
"I would ask your loan officer why they thought getting a field review was a good idea if the appraisal was that questionable. They kind of threw YOUR money at the deal."
They threw more of YOUR money at the deal. Makes you wonder what the relationship between the appraiser and the loan officer is. Are there any arm's length regulations that keep the loan officer from ordering his wife/father/brother-in-law/girlfriend to make repeated appraisals for clients to pay for? There was a thread earlier about what profession is the most reviled. From what I'm learning here the home appraisal racket would be right up there if people bought houses more often.
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