Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Micawber who wrote (16079)	1/16/2004 7:51:51 AM
From: Tradelite	Read Replies (3) \| Respond to of 306849

I fail to see where I have "glossed over" anything about the "overvaluation" issue. Nor have I "recommended that we all heed the analysis of appraisers". On the contrary, I've been trying to get to the bottom of the rather precise 35-40 percent overvaluation claim made by one poster, and about all I have "recommended" is that people stop whining about how market value is traditionally measured and direct comments about this to the appropriate parties--such as the appraisal and lending communities. Believe me, if I could get our county tax assessor to stop heeding appraisers and measure home values "some other way than by looking at recent sales prices", wouldn't that be nice for my bottom line? No sense wasting my time on such pipe dreams or ranting about tulip manias, however. There are enough people here already who are better at complaining and more ambitious about changing the world than I am. I'm amused, however, at the notions being expressed now that market values of residential properties should somehow be measured in terms of rental value or that the income approach to appraisal be applied to personal residences. When the discussion of housing gets all mixed up with discussions about commercial and income-producing properties, it only confuses the issues, in my opinion. In Northern Virginia, tenants are scarce for many large office buildings. On the other hand, affordable houses are in short supply. Why the value of the latter should be measured on the same terms as the former, is beyond me. And by the way, I've often expressed on this thread my own negative feelings about residential real estate appraisals in general. But I also recognize their limitations---they are opinions of value only. What people do with the appraisal numbers is up to the individuals or institutions which choose to rely on them.