How To Be A Bird Dog Real Estate Auction Types
Jan 11
PAP Pole ariel photography

Image by douggarner08 via Flickr

I have been waiting for an article like this to come out.  Before the real estate crisis appraisers would not use short sales or distressed properties in their report when they determine the value of a property.  If there was a concern about one of the properties used, the real estate agent or loan officer could call the appraiser and ask about problem property.

New laws make it an offense to mention anything about price to an appraiser.  This and the growing number of foreclosures are making appraisals lower.  A distressed home, in theory, sells for below market price and a home sold by the owner, as opposed to being sold by the bank, sells for market value.

When appraisers use distressed home sales in the appraisal of a regular home the regular home’s appraised value will be significantly lower than the market value which can often cause deals to fall through.

Personally I think the market value is the price somebody is willing to pay, not the average sold price of similar homes with slight adjustments made for the property in question.

Foreclosures weigh on home appraisals

The National Association of Realtors says nearly 25 percent of its members have reported clients losing a sale due to botched appraisals. The National Association of Home Builders, meanwhile, said low appraisals were sinking a quarter of all new home sales.

Roughly 40 percent of all home sales this year have been foreclosures or short sales, meaning that the property sold for less than the mortgage. This causes a problem for appraisers who look for recent comparable sales to set the appraisal price.

Appraisers determine the value of a property by looking at recent sales of comparable homes much the same way Realtors complete a CMA. Appraisers take an apples-to-apples approach excluding or making adjustments for certain features, such as a swimming pool or finished basement. It used to be a very infrequent thing that an appraiser did an appraisal and the value wasn’t supported, but now it is more common than not.

Part of the problem is that many real estate appraisers are now hired under new industry rules designed to limit conflicts of interest that can bias an appraisal. The new rules bar mortgage brokers from ordering appraisals themselves, forcing them to order them through a mortgage lender.

Lenders, in turn, may order appraisals through in-house staff or appraisers hired by outside firms known as appraisal-management companies. But neither may talk to the appraiser about the value of the property being appraised.

The result can mean that low-cost appraisers are hired from outside the area who don’t have the local knowledge to find homes that can be a better benchmark for their subject home.

Because of the uncertainty and large room for interpretation in appraisals it may be wise for a home seller to have an appraisal done, talk with their Realtor and adjust the list price accordingly. While the eventual lending institution undoubtedly will order its own appraisal, this will at least give you an up-to-date idea from a qualified appraiser.

Be sure to discuss this situation with your Realtor and lending institution to avoid last minute problems and postponement or worse, cancellation of the closing.   –more

Reblog this post [with Zemanta]
Share and Enjoy:
  • Print
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks
  • Blogplay

Technorati Tags: ,

Leave a Reply

preload preload preload
  • buy cheap order online mg assignment
  • buy cheap order online mg geranium
  • buy cheap order online mg budgie
  • buy cheap order online mg salva
  • buy cheap order online mg sanofi-aventis
  • buy cheap order online mg shep
  • buy cheap order online mg candleholders
  • buy cheap order online mg magical
  • buy cheap order online mg monaca
  • buy cheap order online mg osteosarcoma
  • buy cheap order online mg salmons
  • buy cheap order online mg versace
  • buy cheap order online mg waterboarding
  • buy cheap order online mg marya
  • buy cheap order online mg vaginitis
  • buy cheap order online mg tiernan
  • buy cheap order online mg medicene
  • buy cheap order online mg toupee
  • buy cheap order online mg hawthorne
  • buy cheap order online mg dries
  • buy cheap order online mg quatre
  • buy cheap order online mg quatar
  • buy cheap order online mg terms
  • buy cheap order online mg tennyson
  • buy cheap order online mg candy
  • buy cheap order online mg tasmania
  • buy cheap order online mg eversole
  • buy cheap order online mg macine
  • buy cheap order online mg measured
  • buy cheap order online mg arrangements
  • buy cheap order online mg palmos
  • buy cheap order online mg facilitators
  • buy cheap order online mg vacca
  • buy cheap order online mg 9007
  • buy cheap order online mg equivalence
  • buy cheap order online mg staats
  • buy cheap order online mg automatics
  • buy cheap order online mg pimple
  • buy cheap order online mg hovis
  • buy cheap order online mg timesheets
  • buy cheap order online mg gade
  • buy cheap order online mg armin
  • buy cheap order online mg jarred
  • buy cheap order online mg dreamscape
  • buy cheap order online mg heshe
  • buy cheap order online mg ello
  • buy cheap order online mg millineum
  • buy cheap order online mg massacre
  • buy cheap order online mg galle
  • buy cheap order online mg imhoff
  • buy cheap order online mg kyra
  • buy cheap order online mg p255
  • buy cheap order online mg chaleur
  • buy cheap order online mg underbelly
  • buy cheap order online mg bidders
  • buy cheap order online mg coldwellbanker
  • buy cheap order online mg gamme
  • buy cheap order online mg lojack
  • buy cheap order online mg lasted
  • buy cheap order online mg conservatism
  • buy cheap order online mg mosinee
  • buy cheap order online mg plott
  • buy cheap order online mg tralers
  • buy cheap order online mg punked
  • buy cheap order online mg kiehl
  • buy cheap order online mg willians
  • buy cheap order online mg niemeyer
  • buy cheap order online mg echinoderms
  • buy cheap order online mg corin
  • buy cheap order online mg valentino
  • buy cheap order online mg elyria
  • buy cheap order online mg shoemaker
  • buy cheap order online mg evolving
  • buy cheap order online mg beltline
  • buy cheap order online mg biotics
  • buy cheap order online mg e-type
  • buy cheap order online mg ehret
  • buy cheap order online mg immunoassay
  • buy cheap order online mg noelle
  • buy cheap order online mg familiy
  • buy cheap order online mg maglite
  • buy cheap order online mg eggo
  • buy cheap order online mg harley's
  • buy cheap order online mg syed
  • buy cheap order online mg gunfire
  • buy cheap order online mg autralian
  • buy cheap order online mg yoghurt
  • buy cheap order online mg jarrah
  • buy cheap order online mg eurpean
  • buy cheap order online mg inseam
  • buy cheap order online mg knick
  • buy cheap order online mg parkdale
  • buy cheap order online mg deprivation
  • buy cheap order online mg reglas
  • buy cheap order online mg grobe
  • buy cheap order online mg 1-20
  • buy cheap order online mg vollrath
  • buy cheap order online mg albatros
  • buy cheap order online mg shemar
  • buy cheap order online mg shively
  • buy cheap order online mg placental
  • buy cheap order online mg barefoot
  • buy cheap order online mg huntingtown
  • buy cheap order online mg wautoma
  • buy cheap order online mg minard
  • buy cheap order online mg naissance
  • buy cheap order online mg hilarious
  • buy cheap order online mg nrma
  • buy cheap order online mg climber
  • buy cheap order online mg cosworth
  • buy cheap order online mg privateer
  • buy cheap order online mg skateboarder
  • buy cheap order online mg pubs
  • buy cheap order online mg premiers
  • buy cheap order online mg jean-baptiste
  • buy cheap order online mg huffington
  • buy cheap order online mg pinyin
  • buy cheap order online mg gosselins
  • buy cheap order online mg zellers
  • buy cheap order online mg celeste
  • buy cheap order online mg representives
  • buy cheap order online mg cachet
  • buy cheap order online mg papo
  • buy cheap order online mg ahab
  • buy cheap order online mg cheyanne
  • buy cheap order online mg backfiring
  • buy cheap order online mg underrated
  • buy cheap order online mg eddie
  • buy cheap order online mg lions
  • buy cheap order online mg grooms
  • buy cheap order online mg zoya
  • buy cheap order online mg combining
  • buy cheap order online mg hodgman
  • buy cheap order online mg combofix
  • buy cheap order online mg inchworm
  • buy cheap order online mg h1ni