A large percent of appraisers are being asked to inflate home values, and they fear losing repeat business, according to a survey conducted by ValuFinders Inc., a provider of valuation services to national lenders and government agencies, and developer of the Web-based appraisal ordering system, Appraisal CONCEIRGE.
"Our findings show that almost all appraisers have experienced some form of appraiser pressure," said Joe Williams, president/CEO of ValuFinders. "This data is in concert to what we have heard from appraisers and experienced as former appraisers. This ultimately reiterates the importance of adding technology to the process to better manage undue pressure."
Findings from the survey include:
• 91 percent stated that they were asked to inflate the value of a home. This group has also known colleagues that have been pressured to inflate the value of a home;
• 81 percent feared losing repeat business based on not providing requested values. In fact, a few of the appraisers surveyed expressed their concerns about losing business because they did not provide the client a value before the client ordered an appraisal;
• 52 percent felt that their workload would become easier if the industry adopted technology to facilitate the appraisal process; and
• 65 percent agreed that they were affected by the pressure to overvalue homes.
According to one of the appraisers surveyed, "We've all been pressured to inflate values and loan officers are often fishing for value with their comp check requests."
The survey also found that there were some appraisers who were not affected by the pressure. One appraiser in particular mentioned that he takes an impartial approach when valuing a home, "I'm paid to develop and report my own opinion," he said. "I don't have a problem telling any client what I think a property is worth."
"With the changing legislative climate, originators need the best technology available to remain competitive," Williams said. "We want them to know that technology is available now and that they just have to make business decisions that will incorporate technology and successfully take them into the future."
For more information, visit www.valufinders.com.