The Appraisal Institute recently released a report explaining that the current low prices across much of the housing market are not the fault of individual appraisers.
There has been a significant amount of blame passed around - mostly aimed at appraisers - for the continued low home prices, but finding a scapegoat isn't that easy, according to the group. Appraisers also have no bias when declaring the value of the home, it says, as the clients they work for are residential lenders.
"Appraisers don't set the real estate market; they reflect what's happening in the market," said Sara Stephens, president of the Appraisal Institute. "Think of the appraiser as a mirror, reflecting the market. Obviously, the market is depressed - home prices have fallen far below the values of a few years ago."
A report in December from the National Association of Home Builders showed that buyers were backing out of residential home purchases due to low appraisal values. Approximately 60 percent of builders noted that they had seen a significant difference between the appraisal price for the home and the contracted price.