Appraisers have been the target of complaints since the fiscal crisis began in 2008. As a result, some lenders started requiring that appraisers provide as many as eight to 10 comparable transactions in their reports. Prior to the requirement, lenders generally required at least three comps on most residential appraisals. The National Association of Realtors called this new requirement “excessive” in an Oct. 11 news release. The NAR claims that the requirement was affecting home sales.
An NAR online survey showed that 11 percent of realtors indicated a contract was cancelled during the last three months due to an appraisal, and an additional 15 percent of surveyed realtors said a sale price was renegotiated to reflect a lower appraisal. However, 65 percent of realtors reported no contract issues connected to home appraisals.
The pendulum continues to move on the appraisal industry in the wake of the fiscal crisis.