The Impact of the Home Valuation Code of Conduct
This month, NAR conducted a survey of its members to gauge the impact the Home Valuation Code of Conduct (HVCC) is having on the real estate industry. A preliminary analysis released on July 6, 2009, indicated that the implementation of the HVCC appears to be having adverse impacts on the housing markets.
A more detailed analysis of the survey results confirms the early analysis. While 70 percent of appraisers report that turnaround times shortened after May 1, 2009, approximately 75 percent of Realtors® who responded report an increase in the length of time it takes to get the appraisal report, which is causing delays or cancelling deals. This may correspond to an increase in the number of appraisal requests coming from AMCs. NAR’s appraiser members report that 40 percent of appraisal requests come from AMCs after May 1, 2009, compared with only 13 percent prior to May 1st. Both appraisers and Realtors® say this is having a negative impact on the quality of appraisals while the cost of an appraisal for the consumer is increasing.