REALTORS: You've just written an offer. You've got it accepted. It's in escrow. The lender begins the loan process.
....In the "good old days" (a few years ago), a buyer's lender would send out "their" own appraisers and in a couple of days they'd get back an APPRAISAL. One that stated the home the borrower was buying was, worth X amount of dollars. Generally the appraisal was right on the mark (accepted price). This happened in most cases and regardless if the home really was worth a tad more or less than the purchase price. We (Realtors and lenders) ALL know that is/was true in MANY purchases.
Well, those days are gone, even if only temporarily (until the skittish banks gets back to some normalcy). TODAY, in order to get that appraisal accepted, which is one of the conditions of an underwriter (UW), the appraisal MUST (most of the time) appraise correctly. No fudging allowed, as the UW's are going over every comp the appraisers submit with a fine tooth comb. I am hearing this over and over, and it just HAPPENED to my one of my buyers. So BEWARE.
Now I don't think this is such a bad thing in my POV (point of view). The home should appraise for the correct value; for the bank and the buyer. It just isn't what WE'RE used to and we're NOT happy about it. We're used to the UW's taking the appraisers comps without much of a glance. We're used to the most difficult thing to get past the UW watchful eyes are income statements, employment history, credit rating, etc.
Sellers: The lesson here (an eye opener) is not only for Realtors and lenders. It is for SELLERS who sometimes WANT more for their home than it is worth. I KNOW, all homeowners feel their nest is "better" than most on the block. I've been in your shoes before and I felt the same way. But keep in mind Mr. & Mrs. Homeowner, UW's won't be visiting your home to see all the cutesy upgrades and lovely touches you've added. THEY only peer down at the stack of papers on their desks and compare your nest to your neighbors. So, let's price it right from the starting gate. Don't overprice it because you KNOW that an interested buyer is "going to want to present a low ball" offer and you'll "come down" at that point.
...Come on down NOW and let's get YOUR HOME SOLD.
For your Lake Arrowhead Real Estate needs (AND A FREE MARKET EVALUATION OF YOUR HOME) call: Kathy "Kat" DeLong, REALTOR.
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