Appraisal Question Is this even legal??

Question

I live in rural Alaska, in a town of 5000+ people. Living in the bush tends to make one accept things not common in the rest of the country.  This sticks in my throat though and I am not sure it is even legal.  I was under the impression that lenders were now required to choose appraisers at random, from a pool of  appraisers, and that they could not use the same appraiser for all their work.  ALL banks and lenders processing a loan here use the same appraiser.  He  travels here from Anchorage and every time a loan is processed he does the appraisal.  To make it even worse his father was the appraiser before him.  They have been the only 2 appraisers here for many years.  When I asked him about this he said he was the only person who had the comps to do the appraisals, and he was not giving them to any one else.  There is no county, city or state record of sales as we are  surrounded by lands owned by native Alaskans, and the federal government.  (on the bright side there are no property taxes either)  he and his father have set the values for property in not only this town but the entire region.  Is it legal for conventional lenders to use the same appraiser all the time?

Ralph R. · Answer

Thank you Roy

you got the right name.  I'm not complaining that anybody did something wrong just saying that the more opinions you have about values the more realistic the results would be.  Part of living in Rural Alaska is adapting to different standards, and ways of doing things.  I know when I have a deal working outside they use random appraisers and the mortgage officer told me it was required by law.  Ill give those people a call and see what they say.

RR

Roy Schauer · Answer

Hi Ralph,

I assume your talking about the Ferrara family. Is that correct? In anchorage they are all members of the same system that provides them comparables. The draw back is most appraisers don't want to fly remotely to do an appraisal or are not familiar with remote sight building appraisals.  I would call Alaska Appraisal and Consulting Group, they are here in anchorage but do remote appraisals for lodges etc. Explain your situation and see if they can give you some more insight.  Here is there web page: http://www.akacg.com/

Hope that helps!

Ralph R. · Answer

Mark

Thanks for your reply.

Its pretty hard to compare the way the market works here to the way it works every where else.  There maybe only 4 or five houses for sale at a time.  there is maybe 1 realtor, and he is a handyman as well.  if you want to buy a house you have very little to choose from, and if you can afford it you pay the appraised price.   if not you pay rent. If the person leaving is in a big hurry to leave he might come down a little.  Some people come here for a set period of time say 3 years.  They list their house the last year or so at whatever the last appraisal was, if they sell it before their time is up they rent the remaining time of their stay.  Somebody coming in buys the house for the appraised price.  Others have tried to get the comps from him, but he won't turn loose of them.  He is not local, he fly's in from 500 miles away.  Locals can't do it because he has the information.

I'm not having problems with his appraisal of my property, he's done 2 for me both exactly the same number, I just feel he has more influence on property value, than one person should have as he appraises every property, every time it sell, or is refinanced.  what if somebody upset him, or he had a bad hair day?

RR

Mark Ferguson · Answer

If he is the only appraiser in the area, they may not have a choice.  Are you having problems with his appraisal?  In my opinion an appraiser does not set the value, but confirms value.  There have to be sales for the appriasers to use and those buyers and sellers most likely did not consult with the appraiser to set  a price.  If he is consitantly coming in well under sales contract prices then mayne there is reason to be concerned.