Jeffrey Schutter's (schutter) Blog

Lets say the market is down 10% in suburban Chicago where I live -- a seller of a home that would have sold in 2005 for $200,000 now begrudgingly accepts $180,000 in 2007 due to the declining market -- a net loss of $20,000 from the homes peak value. That same homeowner signs a contract on a new ...

The problem with appraisals is that they are always backward looking.  I'm sure any Realtor reading this had problems with appraised values when the market was increasing rapidly.  Appraisers use sales data that was "dated" and could not keep up with the intense demand which was fueling prices. N...