Appraisal Changes on the Horizon

Appraisal Changes on the Horizon

Most people who have tried to sell a house know what a pain the appraisal process can be. The appraisals often just don’t match what you know your house is worth, and what other houses in the area have gone for. Sometimes you can fix it; sometimes you can’t do a darn thing about it.

There are many things about current appraisal practices that are counter-productive at best. Right now, appraisers can use the values of foreclosed or distressed homes to determine the price of new or well-cared-for homes that are on the market. These sorts of gaffs affect the ability of the housing market to recover from its slump, and impedes financial institutions from making proper loans for homes. Also, whether it is deliberate or not, appraisals can be affected by outside parties.

But help may be on the way! Groups from all over the housing industry are calling for the current appraisal process to be carefully scrutinized and reworked. Guidelines for the houses that can be used to determine value will be changed, and it will become harder for outside parties to affect appraisal outcomes. These changes may be able to rally the housing market from the pressure it is under.