The Tricky Process of Determining Home Value

5 things you need to know about how appraisals are done

By Geoff Williams, FrontDoor.com | Published: 8/05/2009

Until current guidelines are improved, appraisals may cause holdups for homebuyers and sellers.

In mid-July, the National Association of Realtors asked Congress to step in. Rep. Travis W. Childers (D-Miss) and Rep. Gary G. Miller (R-CA) introduced legislation that calls for an 18-month moratorium on the HVCC, which would give time, presumably, to review the guidelines and, if needed, tweak and tinker with them. In any case, on July 28, the Federal Fair Housing Agency, Fannie Mae and Freddie Mac issued an alert to all lenders clarifying two points that had made a lot of people in the industry upset.

They said that appraisers should have clear experience in the geographic area. If they don't, they should be reported to state appraiser licensing agencies. And appraisers, contrary to popular belief, are not prohibited from talking to the real estate agent.

So while determining the value of a house may look a little ugly right now, there's a lot of potential for things to improve. For the foreseeable future, the appraisal process will itself be in the process of getting appraised.

<< #4: If you're the seller, get engaged in the process I #1: Appraisals are taking longer than they used to >>

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