APPRAISALS: New Issues You Need To Be Aware Of That Could Affect Your Sale Today!
In the past, property appraisal was mostly a routine step in the mortgage process. Once home lending started to unwind, property valuation was caught in the middle of it. While it's not the only reason for the industry's problems, today there's a much higher level of scrutiny of appraisals and the appraisal process. Here's a look at how we got here and what we can do:
•1. Overvaluation- The general belief that homes would perpetually rise in value led to much of the easy lending that created the mortgage meltdown. With the rise in foreclosures and the continuing drop in home values, appraisals are being examined much more closely and can make or break a mortgage approval.
•2. Good comps are scarce- Lenders went appraisers to document trends, not just prices for comparable homes in the past 90 days, and whether prices are higher or lower than they were six or nine months ago. If a neighborhood hasn't seen a sale in a while, finding acceptable comps could be difficult. Lenders have become stricter about what appraisers can us for comps.
•3. Appraisers are busy- With rates back around 5%, appraisers are in high demand and appraisal turnaround time could be longer. HCN has close working relationships with many excellent appraisers who are very familiar with your local neighborhoods. Due to these relationships, we can count on a timely turn around with appraisers who know the area.
What can you do?
•1. Don't let loan to value ratios scare away your buyer. . . let us talk to them because FHA could be an option.
•2. Get actively involved. Share everything you know about the neighborhood with us.
•3. Let us know about new sales asap . . . if a good comp comes up, knowing about it can help an appraiser build the case for proper valuation and save time!
Courtesy of. . .
Frank L. DiRe
Licensed Mortgage Broker
Sr. Mortgage Consultant
800-332-1506 Ext. 345
Home Capital Network
168 RT 37 West, Toms River, NJ 08755
Valerie Archer Belardo
Broker Associate
The Valerie Belardo Team
RE/MAX Tri County
Office: 609-587-9300
Home Line: 609-298-4283
E-Mail: Valerie@belardoteam.com
Each Office Independently Owned & Operated
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