ALAN R. SIMS APPRAISING

A FORENSIC REAL ESTATE APPRAISAL FIRM

WHAT DOES A REAL ESTATE APPRAISER KNOW ABOUT MORTGAGE FRAUD?

NOVEMBER 17, 2008                                                                                                        BLOG #1

     Real estate appraisers are on the front line when it comes to witnessing real estate and mortgage fraud from other real estate counterparts.  Our files at Alan R. Sims Appraising are replete with requests from mortgage brokers, real estate agents/brokers, and other real estate professionals requesting that our firm “bring in the highest value,” when appraising real property.  Simply put, when the appraiser appraises a property at the highest value, the real estate professional makes MORE money and you pay for a property that is overvalued and worth LESS than you actually owe.  Regardless of the value of your home, appraisers are paid a flat fee per appraisal.  Their fees are not based on the value of the home.

     In many cases, if appraisers don’t “play ball” with these individuals, we receive choice words, nasty notes and are “black balled” from being hired.  Many of these real estate professionals have done this practice for so long, many are not even aware this is an illegal, fraudulent and unethical practice.  It is simply the way “things have always been done.” 

     Appraisers are valuable in the real estate transaction.  They keep banks from lending too much money on a property that may not really be worth that “highest value” and protect buyers from paying too much for a home. To read more about why this is important, please see our “Frequently Asked Questions” page under “Is an unbiased, impartial appraisal really necessary?”  This section also offers advice on how to avoid your real estate professional from influencing an appraised value.

QUESTIONS: If you have any questions about any of the above issues, send an email or telephone 909-584-8820.