Some Appraisers are to the Current Housing Bubble what some Analysts Were to the Dot Com Bubble

Home appraisers and stock analysts have very similar job descriptions and valuation methodologies. Like an analyst looking at companies in the same industry to try and determine what a stock price should be, appraisers look at similar houses in the same neighborhood to try to determine what the appropriate value is of a particular property.

Similar to analysts in the late 90s, appraisers now apparently feel pressured to come up with valuations that will facilitate a transaction, rather than provide an objective look.


"Unfortunately, America has been to a school of hard knocks since Congress took action in the S&L crisis. Faulty appraisals are still dictated by interested parties, the schoolyard bullies of real estate," said Hummel. "It's common knowledge that if an appraiser doesn't play the game and 'come in' at whatever value is needed to close the deal, the bullies will take his lunch money. And he had better not tattle."