More and more builders are crying foul as appraisers are continuing to use distressed and foreclosed properties as comps. This has resulted in lost sales and stalled many projects.  An additional concern is the impact of the recently implemented Fannie Mae and Freddie Mac Home Valuation Code of Conduct. This has resulted in increased use of out-of-area appraisers and greater incentives for the lower-cost appraisals completed by less experienced appraisers unfamiliar with the area in which the review is conducted.

The National Association of Home Builders (NAHB) has heard this message loud and clear. Members and Staff alike are actively working to resolve this crisis. NAHB is calling on housing and federal financial regulators to adopt clear, concise regulatory guidance that will allow appraisers to develop realistic valuations based on sales that are truly comparable. NAHB is also working to develop coalitions with financial trade organizations.

One way builders can help is to document their problems they are having with appraisals, particularly outlining the impact these challenges have had on their ability to do business. Forward your input via e-mail to appraisals@nahb.com

For additional information and background visit: www.nahb.org/appraisalprimer