The New Year has started off like last year ended. There are still large numbers of Foreclosures, Delinquent loans and Shorts Sales on the market and many more in the pipe line.
Recent information from Forbes dividing the Country by regions show that the housing market is still not well. In the South, using metropolitan Statistical Areas, Naples/Marco Island rank third out of nine areas on the list of areas with large property value declines. From the peak in the 3rd quarter of 2006 through the third quarter of 2009. The estimated price at the peak starting in the 3rd quarter of 2006 was $507,698. through the 3rd quarter of 2009 the estimated price fell to $286,363. The peak percentage change in FHA home price index is a negative -43.63%. Not good news for those home owners that purchased a home during this time period with little or no money down, an adjustable rate mortgage or interest only loans. You are now in almost all cases in what the industry calls an up side down situation. With rates at almost record lows, you can't refinance because you don't have equity in your property.
How did we find ourselves in this situation? Many buyers were offered low adjustable rate mortgages, interest only or buy downs loans to "Help" them qualify for a mortgage that the Mortgage Brokers and Banks, that review the appraisals submitted, knew that based on your earnings and other factors you could not possibly meet the monthly payments once the rate increases would adjustment. In some cases, people I know had their monthly payments increase close to $1,000. per month.
Sure there were and still are unscrupulous Appraisers in the market that submitted appraisals that did not justify the properties true value, the Appraisers are not the ones that financed the loans.
The sad part is "These Professional" got greedy, and as you read or hear on the news every day we are paying for this and destroying families as the stack of cards continue to crumble.
As I mention in the beginning of this article, many more are in the pipeline,the National average of serious delinquency in mortgages is 6.02%. Serious delinquent loans are on average 90 + day past due. The highest rates were posted by Florida(15.05%) followed by Nevada with(14.05%). The Naples area is 9th in the top 25 Seriously Delinquent Metro area in the Country.
Now that the new HVCC (Honest in Value) is in full force, you, your Broker or Banker can no longer choose an Appraiser who know the market you are working in and has his or her pulse on the market in your area. I have seen time and again "The Middle Man" who is suppose to protect you from Appraisers and Mortgage Broker and Banks from dealing directly with you, send out an appraiser form out of the area with little or no experience in the market place. They take a cut from the appraisers fee and in many cases charge you an additional fee for the same appraisal you received before but with out the Broker or Bankers placing undo pressure on the appraiser to "Hit" the number needed to make the loan go through.
VOLUME HAS SEEMED TO TAKE THE PLACE OF A IN DEPTH APPRAISAL FROM A QUAILIFIED APPRAISER WHO KNOWS THE MARKET AND IT'S SPCIFIC RELATION TO THE TRUE MARKET VALUE WHICH YOU AS A BUYER OR SELLER ARE PAYING FOR.
Before you buy or sell ask your local Realtor who they would recommend to preform an Appraisal if IT WAS THEIR PROPERTY. To often you will find that the Appraiser selected to Appraise your property BUY THE A "MIDDLEMAN" is not from the area that you which you are buying or selling in. HOWEVER THEY MAY PICK THE LOWEST BID AND SEND AN APPRAISER FROM 100+ MILES AWAY WITH OUT A CLUE WHAT THE NUAMCES OF THE AREA ARE. YOU, AS THE CLIENT WHO IS MAKING A LARGE INVESTMENT NEED TO DEMAND AN APPRAISER --Someone that is a member of the local MLS and has many years of experience in the market as a Realtor and an Appraiser to do an appraisal for you. It may cost you a little more, however you will have the peace of mind that the Appraisal report you receive will be correct. I have run into far to many cases where the "Middle Men" who will choose an appraisal for you that is not even from the area you are buying in or has access to the local MLS systems that cover the area. This only allows them to use closed sale after they are reported which in many cases could be 4 - 6 weeks old and don't have the option to use the Listing Information that only MLS member Appraisers do.
So bottom line is if you are planning to sell or buy in this ever changing market, you should have an appraiser that knows the most current information to help you make an informed decision. Don't be mislead just because this "Middle Man" has assigned an Appraiser to value the property you want to purchase that you are receiving the best and most qualified Professional to do it. Demand that they use an appraiser your Realtor recommends or one that you know. If they are not on the lenders approved list TELL them you want them to contact the Appraiser and have them get on their approved list.
I have had over 25+ years as a Real Estate Broker in the Collier county area plus over 7 years Appraising these properties.
Don't settle for anything less than the best Appraiser you can find, been refereed to or know. We don't lend money or take a commission where you area concerned. We are paid a fair market flat fee for nothing less than the best Appraisal the data available allows.
Remember if you are if you are going to pay for one the most valuable invest you may make. Demand only the Best Appraiser in your market. We are hear to offer the current market value for the property you are buying regardless what that number is.
Seller's !!!! Don't forget to have your property appraised before you market your property so you have an honest number with which to work from. That way your home is not on the market for 1, 2 or even 3 years chasing the market down. If you want to sell than get an appraisal before you start.
And last of all please contact if you have any question regarding Insurance replacement cost reports. Estates Work and any other reason you may require an appraisal in this market. We have the experience, and first hand knowledge to cover any need in Collier County you may need.
We are members of all MLS Systems Covering Collier and offer you the timely information you deserve.
Regards,
Gregory W. Bower RD5791
St.Cert Res. Appraiser
President
Bower Marco Inc.
992 Winterberry Drive
Marco Island, Collier County ,Florida 34145
greg@bowerappraisalinc.com
WWW.bowerappraisalinc.com
239-564-1813 Phone
941-240-2104 Fax