A highly visible AMC recently wrote an article which focuses on appraisers' evaluations having an affect on the economic market recovery. The article suggests that the cause of the overvaluation that occurred a few years ago was due to appraisers neglecting to quickly identify declining markets. On the flip side, they are now accusing appraisers of not reacting quickly and appropriately enough to current positive changes in the market, which could enable economic recovery.
Everyone wants the real estate market to recover. What AMC's need to understand is that appraisers do realize the importance of the accuracy of their valuation. Over the past few years appraisers have taken a lot of heat for supposedly causing the decline of the real estate market, so the last thing they want is for their valuations to influence the market either way. Appraisers have a form which allows them to explain the increase (or decrease) in a subject area. This form allows them to explain and justify an increase or decrease in a market area on their reports. If appraisers are not doing this, it may be due to fear of criticism that they are overvaluing or undervaluing the subject property. However, if their adjustments can be justified, they shouldn't be afraid to report it.
Many AMC's use appraisers who are not familiar with a specific residential area and they may not have all the accurate and updated information to assist them in evaluating that market appropriately. This may be a contributor to the slow economic growth described in the article. It is easy to blame appraisers, but there are many other factors that contribute to accurately evaluating a market area. Maybe if the AMC's start using appraisers who are familiar with a market area, we will start to see recovery.