I realize all real estate markets are local, but wondered if you are hearing similiar trends from appraisers in your market area, or if you have had any appraisal "surprises" the day before closing. We have had several in the last 4 weeks, so I met with a group of appraisers yesterday to talk about appraisal trends in our market area; based on their recent appraisals, they stated that Huntsville, AL http://www.hsvcity.com/about/index.php is not in what they term a "declining market"......... that was good to hear.
They did have concerns about days on market. That was a new twist to me....With ever new guidelines for financing loans, the investors providing the loan funds are having the underwriters look at things they never scrutinized before...such as days on market. "We had an underwriter (out of our market area) to look at our appraisal, see the days on market and could not underwrite the loan because their investors would not provide funds for any property that had days on market over 6 months. The investors reasoning was that if the property was on the market over 6 months, either the property was overpriced, subpar-condition, or the market in which it was located was a declining market".
The appraisers also had concerns about new construction homes that have been sitting on the market for months and months; they felt that the builders may adjust prices further or offer new and significant incentives to potential buyers. And if the houses went back to the bank, then the banks would have to dump them in the market and that would affect property valuations.
And as my firm does quite a bit of relocation, they talked about the new guidelines wanted in the appraisals by Relocation Companies. "Now an outside and/or inside photo won't do....they want us to provide multiple photos of exterior and interior....especially interior. If they see highly personalized interiors that will need reflooring, repainting, etc to bring to marketable condition, then they adjust their offers to the transferee accordingly"
Stay In Touch,
Craig
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