The appraisal scam...
I've always suspected this went on, and so it does.
Here's the greatest whopper in the story. No surprise, it comes from the real-estate clerks at the NAR:
Pat V. Combs, president of the 1.3-million-member National Association of Realtors, was surprised to hear appraisers reporting undue pressure from real-estate brokers. Realtors routinely provide appraisers information to support the list price they assigned to a pending-sale property, including comps they used, and would be violating NAR's code of ethics if they pushed for a value to support the offer price, Combs says.
Ethics? Who bothered with ethics during this bubble? I had people showing me homes with 4-inch drywall gaps inside because of cracked foundations, the things crawling down hills. When I pointed it out, the simply spackled up the evidence inside and claimed they'd gotten an engineering report (never produced) that said everything was fine. Who ever heard of a price coming back as too high?