Appraisals - the new organized crime

[Maryann L.]

I know we've thrown around the term "influence" the appraisal or personally I like "assist" in the appraisal process, but this article is EXACTLY why I like to pull my own comps.

http://www.housingwatch.com/2010/02/01/are-appraisals-the-new-organized-crime/

For example - We are currently negotiating on a property a real estate agent GROSSLY inflated her listing price of (399,000) because the homeowner wanted to pay off his $380,000 mortgage, penalties, interest. The realtor told me she suggested to the homeowner the worth of $310,000-$325,000, which at this point is STILL a bit high.

We pulled comps for $270,000-$290,000 and I HOPE the bank will take at least 80% of that value, and we were able to support those comps.

No one can say what a lender will do, but it is IMPERATIVE that we "assist" in the comp process. If I was buying my personal house, I certainly would make sure the appraiser was fully aware of my situation when going to assess the property. In fact, a home I bought to own last summer, I showed up at EVERY appraisal, along with my listing agent who wanted to see the deal through. Why as investors should we not do the same? Yes, we have something to gain, but doesn't everyone in the home buying process? Whether it's for investment purposes or not?