Builders Seek to Stop Distressed Sale Valuations of New Homes

The National Association of Home Builders wants federal regulators to enforce appraisal standards that would stop appraisers from valuing newly constructed homes at distressed sale prices. Some appraisers are engaged in "inappropriate practices" that will forestall a recovery in the housing sector, according to Jerry Howard, NAHB executive vice president and chief executive. He said valuing new homes at prices below replacement value doesn't make sense. "It is one of the components of why sales are not rebounding," Mr. Howard said in an interview. NAHB is working with banking trade groups on getting the Department of Housing and Urban Development and the Federal Housing Finance Agency to address appraisal issues. "We are hoping to get them to join with us and send a letter to HUD and FHFA," he said.