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Defends Appraisers' Conservative Practices

June 22, 1986

Regarding your article (June 8) "Low Appraisals. . . ." As a broker/owner in another area of Los Angeles, I must take exception to Mr. Sands' and Mr. Veigel's solution. The problem might not be with the appraisers, but with sellers and agents listing the property at a "high" price, and an extremely vactive buyers market wanting to take advantage of the lower rates that have now passed.

Three to six months ago, it was not a surprise to see multiple offers on homes within the first day of being on market, and it was no surprise to see these homes sell for over the listed price if a buyer wanted to assure himself of the purchase.

This does not set value. It's a great thing for the sellers and listing agents, but if the appraisal does not come in at the sales price, more than likely you're going to be back on market.

Appraisers do not want to get burned again, like in the early '80s. How can Sands and Veigel justify increases of homes by $50,000 in just six to eight months? That is an increase of over 25%.

Sorry guys, although values have increased, I cannot agree with that kind of an increase in this market. And thanks to appraisers and lenders for keeping the lid on, so as not to have a repeat of the jump in values of the late-'70s. The fact that a buyer wants to pay a certain price for a property has never justified to an appraiser that it is worth it.

JOHN C. LOWREY

Montebello

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