Appraisal Process Is Flawed
This is one of the reasons I am always saying that a mortgage is much more than an interest rate. Appraisals are a big problem and especially in Fort Lauderdale and South Florida. You don’t want to overpay for a property but you don’t want the deal to fall apart because the property under appraises and this happens all of the time.
Luckily at FEMBi Mortgage, we are HVCC compliant and rotate our appraisers but the appraisers on our appraiser list are experienced and know the area they are appraising. With the banks and brokers they use the appraisal management companies which the big banks have an ownership interest in and you never know who you are going to get, their experience, and/or whether they know the area.
I recommend reading the article “Home Appraisal Process Flawed, Government Report Finds.”
A recent NAHB poll showed that one out of three builders surveyed lost signed sales contracts because of flawed appraisals. And a National Association of Realtors survey conducted last fall found 18% of Realtors reporting recent contract cancellations or delays as a result of a low appraisal……..