Via Facebook and the Realtor Action Center, I just read this article by Kenneth R. Harney in The Washington Post regarding Fannie Mae and appraisals. Fannie Mae, beginning in September, must contact an appraiser where there is a discrepancy between the value they give a property and that of the electronic, non-onsite valuation process.
Wow! That's a welcome change from what HVCC has been allowing! Lenders can talk to the appraisers? Awesome! Feet-on-the-ground appraisers can use their experience and better judgement to uphold a sales price? What a novel idea!
For the most part, I think we've been pretty fortunate in this area. I haven't heard of too many appraisals coming in several tens of thousands of dollars under sales price. But we certainly do have neighborhoods that have been devastated by distressed sales. And those same neighborhoods will also have regular, non-distressed sellers who need to sell their homes. These folks are the ones we don't always think about when dealing with foreclosures and short sales.
Will an experienced, LOCAL appraiser be able to make adjustments for comps that are distressed sales? Let's hope so. Is this one step back up the ladder to a more stable housing market? I'm keeping my fingers crossed.