Wow! If it isn't tough enough these days to bring a buyer and seller of a great piece of Sanibel Island Real Estate together, the appraisal process these days isn't helping. As many know, the rules were changed a couple of months back prohibiting any possible interference in the appraisal process by Mortgage Banks and Realtors. The feeling was that part of the cause of our housing meltdown throughout the country was overly inflated appraisals that then allowed the banks to lend more money on a property than it was actually worth. The resulting rules have brought the Real Estate market, across the country, to a virtual standstill.
Here on Sanibel Island we have had numerous "appraisal incidents" that have grossly under valued properties, the most agregious being when a direct access canal home was compared (or comped) to a lake front inland property. This lack of understanding of the local real estate market has created a big headache for buyers, sellers, bankers and Realtors. Take a look at this USA Today article
for a full accounting of the issues and the move to correct the situation.