i bought my first home in 1993 when mortgage rates were 13.5% and a certified land and home appraiser valued my home at 99,000. Tough days. Today, interest rates are low single digit but the same home is valued at 635,000. The reason for the value added is the result of realtors replacing certified appraisers. Realtors set pricing and embed profitability for themselves, each and every time. My last home I sold, I requested an appraisal. The acreage was bought for $145,000 and appraised 20 years later at $370,000. The realtor set the price at 520,000. I sold it for the appraised price to a first time couple.
Controls must be placed on realtor's right to place market value on homes. They aren't appraisers. i fear that their inflated pricing is a large part of the problem. Who allowed them to set pricing of homes? How can this be remedied?
i bought my first home in 1993 when mortgage rates were 13.5% and a certified land and home appraiser valued my home at 99,000. Tough days. Today, interest rates are low single digit but the same home is valued at 635,000. The reason for the value added is the result of realtors replacing certified appraisers. Realtors set pricing and embed profitability for themselves, each and every time. My last home I sold, I requested an appraisal. The acreage was bought for $145,000 and appraised 20 years later at $370,000. The realtor set the price at 520,000. I sold it for the appraised price to a first time couple.
Controls must be placed on realtor's right to place market value on homes. They aren't appraisers. i fear that their inflated pricing is a large part of the problem. Who allowed them to set pricing of homes? How can this be remedied?
Thanks for reading! I'll have to look into that more. There's no doubt that realtors have benefitted significantly from this crazy housing market.