‘Don’t shoot the messenger’ appraisers say of lower values

Appraisers are increasingly taking the heat for more transactions being canceled or delayed after more appraisals reportedly are coming through that don’t meet the contract price.

In August, the National Association of Realtors reported that 18 percent of real estate professionals saw contracts fall through when lenders rejected loan applications or appraisals came in lower than expected. About 11 percent reported they had a contract canceled in the previous three months because of “low” appraisals.

But appraisers say it’s not their fault. They argue that many people just don’t realize how much home values have dropped since the housing boom. Plus, appraisals have become more challenging due to fewer sales available to use as comparables and the high number of foreclosures bringing down values.

Complaints from home owners filed nationwide about low appraisals are skyrocketing, according to states’ commerce departments.

“Appraisers were blamed for the run-up of the market when prices were high, and now they’re being blamed because prices are low,” says Ken Chitester, a spokesman for the Appraisal Institute. “Both can’t be true. Appraisers are doing the same thorough research and thoughtful analysis that they’ve always conducted. So, in short, don’t shoot the messenger.”