The Real Deal New York

Appraisal rules still rankling Manhattan brokers

June 23, 2010 12:00PM

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Since changes were adopted a year ago in how appraisers are selected, New York real estate agents have been complaining about an influx of out-of-town appraisers who don’t understand the intricacies of Manhattan real estate and have repeatedly undervalued properties, the Wall Street Journal reported. Under the new industry rules, which went into effect in 2009, mortgage brokers, real estate agents and loan officers are banned from choosing their own appraisers, causing an increase in the use of out-of-town appraisers. Brokers and developers say this leads to a greater likelihood of lower-than-expected property
estimates, causing repeat appraisals and deals to fall through. The new rules are in effect nationally, but real estate professionals say the impact has been particularly acute in New York, where appraisals can vary widely from block to block and many individual properties are unique. [WSJ]

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