I am becoming concerned about inflated prices and dropping values.Yes, they are one and the same.The housing market has slowed everywhere, even in Manhattan.(Yes, it is true.Do not listen to the realtors that tell you they are busy busy busy!)

     Spitzer has recently gone after a few of the larger appraisal companies and mortgage brokers in the city for inflating appraisal values over the past few years.I balked at this notion, because everybody is licensed and would not that sort of thing.However, recently I have been question past practices.

     Recently, I did an appraisal for a coop in Brooklyn.I used a small appraisal company that I like in Brooklyn.He came back almost 10% below the sale price.The realtor freaked and said that he had personally sent the comps over to the appraiser.I called the appraiser and questioned why he did not use them and how did the value come in so low?He replied that the comps were either non existent, erroneously quoted (from the source data sheet not the realtor or inflated beyond recognition.Odd, nobody believed the guy. So, I spent 400 bucks of my own money and ordered an appraisal from the large NYC based appraiser the comps came from.A few days later, the appraisal came in…..at the exact sale price.Odd……maybe Spitzer is on to something.

-Dale Siegel