Understanding the Pressures on Appraisers

This letter is in response to Robert Bruss’ response to “Don’t Accept Appraisal That You Don’t Like” (Aug. 20). It is true that a borrower can request an additional appraisal. But that is where the truth ends.

Appraisers are not instructed to appraise conservatively. It is just the opposite. Appraisers are under tremendous pressure to meet sales prices and owners’ expectations.

This presure is put on appraisers by loan brokers, real estate brokers and agents, and loan agents. To an independent fee appraiser, the threat is: “If you don’t bring the value in, you won’t get any more work.” To a staff appraiser, the threat is: “Don’t rock the boat, don’t make waves, bring the value in, we are here to make loans.”

Bruss does not appear to understand what an appraisal is or the restraints put on the appraiser by the different government and quasi-government agencies.

An appraisal is an opinion of value. Appraisers are required to adhere to extensive rules and parameters set by these agencies. Most conventional lenders require that closed sale comparables are used to base the value on. This means that appraisers are using historical data, not current escrows, to base their opinion on.

In a rapidly appreciating real estate market, it is often difficult to support sales prices using these closed sales. These rules are not set by the appraisers. These rules were developed to protect the banks and savings and loans. Finally, if you have a complaint, complain to the Federal Home Loan Bank Board, FNMA FHMLC or to your congressperson. We are tired of hearing your whining.

KENNETH B. BERLEY

Woodland Hills

Berley is a partner in the real estate appraisal firm Berley, Isenberg Associates.