In all cases the comps the appraisers used obviously demonstrated the appraiser's lack of knowledge of the area, so I suspect the comment of @Josane Cumandala is correct - they're using unqualified saps who got a mail-order certificate from somewhere.In any case, there's no real defense against this.

This post demonstrates the impact of property taxes and insurance has on return.Based on the above formulas, we are seeing between 3% and 4% ROI with 20% down, 4.75% interest rate, 30 year fixed financing.

The one I am drafting is a straight up look at multiple offerings demonstrating multiple ROI for different strategy's  Hold for rental or Flip on a sale.

Once the property is developed, and becomes a business with demonstrable cash flow, the value goes up again.

It is one of the oldest sales tricks in the book but it demonstrates to me they think more scrutiny is less likely to result in a sale.  

To do so, you need way more knowledge than your post demonstrates.

As a homeowner already, you have demonstrated that you have the capability and means to purchase a home, so you aren't the target for this product.

But it may be that the property was held for investment appreciation and the face that she has not used it for a long time for anything other than to hold like raw land is demonstration of that intent.What they are reporting from the attorney is a "safe harbor definition from rev proc 2008-16. 

If you are talking about a nationwide real estate market, my assertions is: that a nationwide real estate market does not exist and the 'cycles' you see in the Case Schiller are the second and third order consequences of fluctuations in the greater national economy, which has demonstrated cycles. 

Yes you can buy it now, but you would have to demonstrate to the city attorney that you can pull the job off.