You can't trust appraisals anymore, especially in the 'boom' states (FL, CA, AZ, etc.). It's not the appraisers fault, it's the lending industry's fault. Appraisals measure market value - what people have recently paid for nearby similar properties. But, what people were able to pay was determined by how much of a mortgage they could qualify for.

Banks and lenders have 'leveraged' borrower incomes through unsafe, unwise, and unsustainable loan practices over the last ten years. This has skewed market values in many areas to such an extent that even banks don't trust appraisals anymore.

ValuSage.com's MSV Estimate compensates for the income leveraging effect. It estimates a maximum stable value for a neighborhood based on the neighborhood's median income. It's not a direct measure of market value. But it does give you valuable information about the market value:


  • Market Value Stability - If the market (appraised) value is above the MSV Estimate, the market value will eventually decline.


  • Potential for Area Value Appreciation - If the MSV is above the median market value in the area, there is room for a sustainable appreciation in value.

This is a new site and the tool is in the 'beta' stage. If you are going to use it, be sure to read over the Help, particularly the Evaluating MSV Accuracy section.

Good luck. Don't forget to check the MSV!