5 Things You Should Know About Appraisals

By
Real Estate Agent with KW Elite
https://activerain.com/droplet/NNB

house

Front Door had an article about home appraisals. Having your home under contract is the first step in selling your home and moving on but an appraisal is a necessary hurdle you must jump. Here are things you should keep in mind in the post-housing bubble appraisal world.

1. They are taking longer than they used to - weeks instead of days.
2. They cost more than they have recently - depending on the area it could be a couple of hundred more than it used to be.
3. They are leaning towards undervaluing houses instead of risking over inflating the value.
4. If possible, sellers should get involved and be present during appraisals - let them know about upgrades you've made, bring "before" pictures, it can't hurt your case.
5. Appraisal rules will get worked out, eventually:
On July 28, the Federal Fair Housing Agency, Fannie Mae and Freddie Mac issued an alert to all lenders clarifying two points that had made a lot of people in the industry upset.
They said that appraisers should have clear experience in the geographic area. If they don't, they should be reported to state appraiser licensing agencies. And appraisers, contrary to popular belief, are not prohibited from talking to the real estate agent.”


Posted by

 

Michael J. Perry

KELLER WILLIAMS Elite

www.lancaster4sale.com  

 

1280 Plaza Blvd. , Lancaster, PA 17601

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Longtime West Lampeter resident and Lancaster County Realtor!

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Rainmaker
94,295
Dan Mincher, CCIM
The Vollman Company, Inc. - Sacramento, CA
Sacramento Commercial Real Estate

Michael;

All good points for us to know, and here's my questionson the first 2:

1.  Why is it taking longer? 

2.  A couple of hundred dollars more can represent a price increase of 20-50%.  Why such a sharp jump?

 

Jan 02, 2013 09:55 AM #1
Rainmaker
909,365
Bob Ratliff
Robert Ratliff Realty - San Antonio, TX
"Sold with Bob"

Michael, thanks for sharing your blog post and points, yes with all the appraised values a few years ago and all the MESS Fannie and Freddie are be extremely careful about values. I haven't notice the increase in price but I primarily work with Sellers. Good Stuff Bob

Jan 02, 2013 11:07 AM #2
Rainmaker
3,141,932
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Home and Condo Specialists

Totally agree that appraisers should know the area. We once had one under value a condo by 200,000 and noted that it didn't have a basement. It had a full finished basement with 9ft ceilings!

Jan 02, 2013 11:13 PM #3
Rainmaker
269,179
Don Hess
KW Elite Keller Williams 1280 Plaza Blvd. Lancaster, PA 17601 - Quarryville, PA

Valuable info Mike. No question they should know the area. I found the last point very interesting. Not an appraiser, but a Broker doing a BPO on a short sale, told me that Fannie Mae prohibited him from discussing price with me, as i was representing the seller. Any reason why Brokers should operate under different rules?

Jan 03, 2013 04:29 AM #4
Rainmaker
2,239,308
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Our current appraisal system is certainly not in the best interest of the consumer. That is supposed to be who is being protect, not so much as you well know.

Great post, you have shared with all us.

Jan 06, 2013 01:02 AM #5
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Michael J. Perry

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