Maybe Bid, Not the Appraisal, Posed Problem
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Regarding “Lender Refuses to Accept Appraisal” (Real Estate Q&A;, by Robert J. Bruss, June 30): The buyers stated that they “would pay $5,000 more than any legitimate, competitive bid” and that they were in a “competitive bidding situation.” Based on the information provided, concluding that the low appraisal was bad and the high appraisal was good is absurd.
Was the appraiser hired by the buyers approved by the lender? Did they expect the lender to just accept an appraisal from an appraiser without first verifying the quality of his or her work?
There are too many appraisers (and Realtor-brokers) who will tell you whatever you want to hear to generate business and get paid. There aren’t many appraisers who will risk losing future business with a low appraisal unless it is very supportable.
Bruss is right that bad appraisals were and are a problem when they are based on “making the deal” and not on market value.
KEITH JOHNSON
Arcadia
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