Appraisers In the Hot Seat
Nov 26, 2007 by Tre Pryor, Editor-in-Chief. Commercial
New York’s Attourney General has filed a lawsuit against First American Corporation for fraud. The claim says the company allowed its largest customer to influence their appraisal estimates. This problem is certainly not new but it could be increasing.
The pressure to inflate property values, may be rising. The article cites a survey of 1,200 real-estate appraisers released this year, 90% reported being pressured by real-estate agents, lenders, mortgage brokers and consumers to adjust property values in order to allow deals to go through, up from 55% in 2003, according to October Research Corp., based in Richfield, Ohio. In addition, 75% of them reported “negative ramifications†from refusing to inflate appraisals, which for most of the appraiser meant losing the client. [link]
It’s always a good idea to check and see if your appraiser is in good standing with the Better Business Bureau.
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