In a cooperative venture of the Appraisal Institute, American Society of Appraisers, American Society of Farm Managers and Rural Appraisers, and the National Association of Independent Fee Appraisers an 11 page letter has been released in response to the recent developments in the Home Valuation Code of Conduct (HVCC).  The HVCC is a product of Fannie Mae, Freddie Mac, and the New York Attorney General office in response to the growing recognition of problems of appraiser coercion, and lender pressure.  

The most notable change for consumers is the call for dislosure on the HUD forms for the amount actually paid to the appraisal provider and the amount paid to for the management of that appraisal.  Borrowers may be surprised to see how much much of what is presently billed as appraisal fees is actually going to the management of those appraisals. 

A copy of the letter is available here:

http://www.appraisalinstitute.org/myappraisalinstitute/downloads/AI-ASA-ASFMRA-NAIFA_HVCCFinal.pdf

It appears to address some of the primary concerns of residential appraisers. I believe this joint venture produced an excellent letter to regulators and a call for action to solve many of the issues with the original HVCC draft.

Russell Kitzberger
Pointer Appraisal Services LLC, Stow Ohio
Residential and Commercial Appraisal in Northeast Ohio
www.PointerAppraisal.com

Local MLS data suggests the present average priced property in Summit County Market has a 10 month supply and is priced approximately 8% over the expected list/sale price. There has also been an increase in the average days on market.

Are homes oversupplied and overpriced?

As of 08/17/2007 per Centralized MLS data, there are presently 4902 Residential properties listed for sale through the MLS in Summit County.  Active listings average days on market are 96. 

The six month preceding period brought 2866 sales of Residential property.  The average days on market for sold properties in this time period was 89.

The present average list price is $170,920.  The 6 month average sale price was $149,685.  The average sale price has been 95.66% of the list price over the same 6 month time period.  This calculates to approximately an 8% overprice in current listings.

This is general information and is not inclusive of all areas.  The important question for home sellers is if their present listing price is in line with the buyers expectations in their area.  These numbers do not include any inflationary or appreciative adjustments.

Many resources are available for home sellers in pricing their properties.  Some examples include: Real Estate Agents, Realtors (Agents who are members of the national association of Realtors), Appraisers, County sales data, and others.

The preceding information has been provided by Pointer Appraisal Services LLC.  It is based on MLS data which is deemed reliable but not guaranteed.  This is general market data and should not solely be relied on to make any financial decision.  Each area is different.  Before making any financial decision you should consult a qualified expert.  The statistics provided are based solely on average sale and list prices and do not include any inflationary or appreciative adjustments.

Pointer Appraisal Services is a Residential Appraisal firm located in Stow Ohio.  Pointer Appraisal services provides Appraisal and Real Property Consulting throughout Northeast Ohio.  Services include market data, pre-listing appraisal, mortgage appraisal, and appraisal for legal proceedings such as estate, bankruptcy, and divorce.  The company can be reached on the internet at: http://www.pointerappraisal.com/

Russell Kitzberger, found of Pointer Appraisal Services has joined the active rain network.  In addition, www.pointerappraisal.com has added new rich features and content to provide real estate professionals and prospective customers in depth information about appraisals and their uses and function.