Killing Real Estate & Driving Down The Market: The Law Of Unintended Consequences
August 19, 2009 / 11:42 am • By Dr. Melissa Clouthier
Where I live, there has been no real estate bubble. Nothing has burst. Still, a new law was put into place that forces banks to draw a name randomly to appraise homes. So, newbie appraisers are coming into neighborhoods where they have no knowledge and giving very under-valued appraisals.
The result? Deals have been scuttled, home prices are being forced to drop and home owners are losing equity.
And this problem was all a result of unintended consequences: The government inserted themselves into a situation trying to “help” and ended up harming the very ones they were trying to protect.
