A new trend has shaped up in the home buying and refinancing market. Stung by criticism from the public and politicians, residential real estate appraisers have reacted by becoming much more conservative when appraising current market value of homes being purchased or refinanced. This has lead to many transactions falling through as values don’t come in at the price agreed upon by principals. A new law requiring that appraisers be selected randomly has added to the confusion as well.
See this article from Bloomberg.com.
