Any buyer that has been looking for a starter home in Fullerton or in Orange County for the past few months knows exactly how fierce this market is!
If you are lucky enough to win the offer war as a buyer, then your next hurdle is with the appraisal.With values coming in so low because of out of area appraisers, short sales sold extremely below market value and everything else. We often bite our nails off hoping to get the "all clear" on the appraisal. I was having a conversation with another Realtor today and she had a perfect way to explain it to our poor buyers and sellers who are just exhausted by the whole situation!
Market Value - This is the price that the market will bear. When you have 40 buyers for a home, this will drive the market value up. If you end up with 10 buyers that are willing to pay $400,000 for a house, this becomes the "Market Value".
Appraised Value - This is the value that the appraiser will assign the property. Lately, I am hearing that lots of "appraised values" are coming in EXTREMELY low and it is hurting home owners that are trying to re-finance or sell their properties.
What it was worth in 2006 - Unfortunately this is the toughest. Every single seller (and I mean EVERY one) knows what their house WAS worth at the peak; yours truly included. No one is immune to this and it is really tough to sit down with a seller to talk about listing their home for hundreds of thousands less than it was worth then; especially if that is when they bought it. It can be heart breaking.
That market will go up, it will go down and right now, it is just darn crazy! The bottom line is that if you can make your mortgage, make it. At some point, it will go back up. It always has!
If you are a home owner and can't make your mortgage; there are resources available. I am one and it won't cost a thing to have a conversation about it and it is completely confidential!________________________________________________________________
Cristal Drake – Fullerton Realtor (R)...At Your Service for all your Fullerton area real estate needs! Prudential California Realty - 714-423-7525. DRE#: 01272061. All information in my blogs is believed to be accurate but is not guaranteed. Copyright 2009 all rights reserved.
Receive my blogs via email! Click here:
Subscribe in a reader Search The MLS Here! 
;)
;)
Preach it, sistah! It is a very sensitive subject to broach with home sellers when it comes to the value of their home. Appraisals here are down as well and it is just throwing wrenches in ALL the cogs!