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Various Realtors and mortgage lenders are telling me that appraisals are coming in low, if they do not fall into the AVMs range. Lenders are using Automated Valuation Modeling, that they have been working on for many years now. They've been plugging the data from the appraisals into a applications that has been creating a data base. If the home falls into the range, some lenders are not even requiring an appraisal to be done, even on a sale. Hopefully they are plugging in the details of all these sales that are occurring without appraisals being done. I would love to see the modeling criteria's. Point; it appears there is a concerted effect to keep the sales prices down. As a former appraiser I've challenged a couple of recent appraisal and they pretty much ignored the documented data I supplied to in the rebuttal and it killing numerous transactions. Those with cash are over bidding to get the deals by paying above appraised value forcing many people out of the market.
Good analysis and i agree on all your points
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