Values are constantly changing. I can't just look at a house and tell you what it is worth. Research has to be done to determine that. I mean, I can throw estimates out and be somewhat close, but without analyzing each property and it's very specific market, there is no way to tell. It is very hard for anyone to really know the value of a market unless they spend time studying it, which potential buyers should do.

Once again, you have to remember that the consumers set the market and the appraisers report the data.

The sales comparison approach is given the most weight of the three approaches to value when determining value in a residential appraisal (uness it is a rental property or something special). Appraisers look at other recent sales of homes in the neighborhood that are judged to be similar to the subject property and compare them to the subject. Those final closed sales prices are the most important bit of information, because that is what the appriaser bases nearly their entire value estimate on. Here is the important part, whether the market is inflated or deflated has no bearing on the appraisal because that will be reflected in the sales prices of the comparables. At the end of the day, all the appraiser can do is utilize the closed sales and base his or her estimation of market value off of what the market tells them. The appriaser can't just throw out statements that he or she feels that the market is, oh say 5% inflated, therefore, 5% was deducted from the comparables homes sales price. Could you imagine if people did that. How would you determine how inflated or deflated the market was? That just can't be done. The appraiser is there to estimate the current market value of a property based on closed sales. Not analyze whether the market is inflated or not. The whole residential appraisal game is based on closed sales of comparables properties, that is it.

If it makes you feel better, I have personally killed deals where people were going to pay too much for a house and I have also appraised houses for more than they were selling for.