Letters to the Editor

Re: 'Home prices drop at record rate in national index' (Nov. 27)

Dear Editor:

Another great article as usual. While I sincerely appreciate being able to peruse your news, numbers are numbers. Dealing in statistics on a daily basis, I quite clearly understand that they can be massaged to entice or abhor any reader of the same figures. The one critical piece of information I find somewhat glaringly missing regarding the subprime market has been "lender pressure" as it effects appraisers, those that actually allow it and, as such, the resultant "opinion" of value. Without going on a rant about agents, who generally are less incredulous than loan officers, I'm slightly miffed as to why you haven't reasonably covered the "800-pound gorilla" in the room.

In short, I find Mr. Shiller and his analysis significantly credible. However, what he hasn't factored, or at minimum disclosed factoring for, is that a significant portion of this "anticipated" loss is due to inflated values developed by noncredible "professionals" (and I use this term loosely).

While I have no intention of beating up on my chosen profession, it is obvious that renegades and rogues exist at all levels of every profession. It is quite simply my belief that pointing out to your readers the conception that water seeks its own level (runaway appraisers, lenders and borrowers, for that matter, are reigned in, given real estate is cyclical) and a considerable portion of the anticipated "deflation" is, in fact, the market coming back to reality. Everyone would love to believe their property appreciates at 10 percent-plus annually, and all we need do is go back to the "refinance trough" annually.

Fortunately, or unfortunately for others as the case may be, my definition of market value has not evolved to that which has been typical of the past five years: "The sum of my outstanding mortgage balance(s) and credit card(s) and/or personal debt, plus a trip to Tahiti, packaged at a maximum 80 percent LTV since I'm unwilling to pay PMI."

I personally dealt with this back in the late 1980s with the S&L debacle and, while it didn't have as significant an impact on residential real estate, the lending community will, at every opportunity, flex its muscle. Until true appraisal autonomy is prudently and realistically sought, and therefore reasonably achieved, caveat emptor.

Mark Ziegler
Landmark Valuation
Two Rivers, Wis.

Re: 'Consumer access in the cards for NAR's real estate 'Gateway'' (Nov. 26)

Dear Editor:

It's about time we decided to share our information. We know that real estate professionals need this information, but the consumer wants it in order to prepare to work with and better evaluate a real estate professional's performance. Consumers might even hire an agent to show them a FSBO. We know they can't view an MLS listing without an agent, but they will feel more empowered by access to the same information we have.

I think most agents would feel a statewide database is adequate because our licenses are limited to that state; a national database makes sense for referrals and comparison purposes. An ever-moving consumer wants access to more than just the state in which he or she currently resides. If we don't provide this, someone else will, i.e. Craig's List.

With the current market conditions, this would be viewed in a very positive way by professionals and consumers alike. The only caveat is, as always, how it will be governed? With so many differing broker/personal/corporate agendas, it will be difficult to find independent and unbiased brokers.

This is the best idea I've read about in a very long time. I commend the advisory group for its courage and vision.

Mary Margaret Embroli
Broker
Omega Realty
Cape Coral, Fla.

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