Home Appraisal Pressure

Lisa A. Tomaszewski, James Russo

,
Michael Sheehan

Physician's Money Digest, March31 2004, Volume 11, Issue 6

How much is the house you want tobuy really worth? Most mortgage lendershire a house appraiser to crunch the numbers,but a recent study by OctoberResearch reveals that more than half ofall appraisers feel pressured by lenders toinflate the value of the homes they lookat. According to the report, 55% ofappraisers surveyed say that they have feltsuch pressure and more than a quarter ofthem say it happens in more than half ofthe cases they handle. Mortgage lenders,who have been feeling the squeeze from adrop in refinancings, may use the highervaluations to collect the larger fees thatcome with bigger loans.