Some lenders are requiring appraisers to come up with as many as 8 to 10 comparable transactions, which is having a negative impact on sales, according to the National Association of Realtors.
Pre-housing crisis, lenders usually required that at least three comparables be used when determining the value of a residential property.
But appraisers are coming under pressure from lenders and
As a result, “discounted distressed sales are sometimes used in validating traditional homes in good condition without proper adjustments,” the trade group argues.
A September survey conducted by NAR found that 65% of Realtors reported no contract problems relating to home appraisals in the past three months.
However, 11% of the respondents said a contract was cancelled because of the appraisal and another 15% of Realtors said the price was renegotiated to reflect the lower appraisal.
