Don G. Campbell's article on low appraisals and their effect on the current real estate market was interesting, albeit incomplete in at least one respect.
Realtors, it seems, are quick to blame appraisers for appraisals that may be less than a property's selling price, without noting that guidelines imposed by lenders and secondary-market participants affect the content of an appraisal report to a significant degree.
Joel Singer, research director of the California Assn. of Realtors, accuses appraisers of "missing the trend," and being "slow in realizing that the market is heating up."
Nothing could be further from the truth. Appraisers are forced to deal with many arbitrary guidelines, probably the most restrictive of which, in terms of current market conditions, is the requirement that at least three comparables be closed sales within six months of the date of the value.