LAS VEGAS -- Home values have taken a nose dive from where they were a few years ago. Many realtors and homeowners blame appraisers for bringing down home values, but appraisers say it's not their fault.
Appraisers decide a home's value by comparing it to what other homes are actually selling for.
A new bill in the Nevada Legislature intends to change that criteria and it is getting mixed reviews. The proposed bill wants to prohibit appraisers from using foreclosures and short sales when appraising a home's value.
"It's completely improper to say the appraiser can't utilize an REO sale or a foreclosure sale because there are some market in Las Vegas that, if you exclude those, there is nothing to appraise," said Mike Brunson, president of the Coalition of Appraisers in Nevada.
The Greater Las Vegas Association of Realtors' data shows 72 percent of all homes on the market are foreclosures or short sales. That means the other 28-percent is traditional or new home sales.
Brunson says all the homes in the neighborhood must be considered in a fair appraisal, whereas new home realtors says it's like comparing apples to oranges.
"They're not even the same thing," said Realtor Frank Gargano. "When an appraiser appraises a new home or an REO or short sale, the only thing they share in common is they're homes."
The bill also aims to make appraisals public record, which they are not. Nevada is one of four states with pending legislation amending appraisal rules. The bill will be discussed in the Senate Committee on Commerce, Labor and Energy on Friday.
