TIMES MAY CHANGE, BUT CONDITIONS REMAIN THE SAME.
WE OFFER REALTOR DISCOUNTS FOR YOUR CLIENTS ON PRE LISTING APPRAISALS. CALL OR CONTACT US FOR ADDIITIONAL INFORMATION!!
DON'T LET YOUR CLIENT CHASE THE MARKET WITH THEIR LISTING PRICE AND WASTE VALIBLE TIME AND MONEY -- PRICE IT RIGHT AND GET IT SOLD -- A WIN WIN SITUATION FOR YOU AND YOUR CLIENT
THE OVER ALL VIEW OF THE REAL ESTATE MARKET IN COLLIER COUNTY FLORIDA HAS NOT CHANGE IN ANY MAJOR WAY SINCE MY LAST REPORT.
SALES ARE INCREASING, HOWEVER THE MEDIAN SALE PRICE CONTINUES TO DECLINE. WHY? THE EVER INCREASING NUMBER OF SHORT SALES, DEED IN LIU AND FORCLOSURES BEING SOLD. THERE IS STILL LARGE AMOUNT OF THESE PROPERTIES THAT HAVE YET TO ENTER THE MARKET.
THERE ARE HOME OWNERS STILL IN THEIR HOME WHO HAVE NOT MADE A MORTGAGE PAYMENT IN OVER A YEAR. HOW CAN THIS HAPPEN -- THERE ARE A NUMBER OF REASONS FROM THE MASSIVE NUMBER OF PROPERTIES BACK LOGED, PROPERTIES FUNDED BY LENDER WHO SOLD LARGE BLOCKS OF MORTGAGES AT A TIME AND NOW ARE HAVING DIFFICULTIES SEPARTING OUT INDIVIDULE MORTGAGES AND TITLES TO GIVE CLEAR TITLE TO CLOSE.
ANOTHER MAJOR PROBLEM IS THE HVCC (HOME VALUATION CODE OF CONDUT) THAT WENT INTO EFFECT THIS YEAR WHICH CHANGED THE ENTIRE PLAYING FIELD OF HOW ONE CAN GET AN APPRAISAL DONE.
GONE ARE THE DAYS WHEN BANKS, REALTORS AND MORTGAGE BORKERS WERE ALLOWED TO PICK AN APPRAISER WHO THEY KNEW AND WAS ALSO FAMILIAR WITH THE LOCAL MARKET AREA WHERE THE PROPERTY WAS LOCATED. NOW ALL MORTGAGES (OR A VAST MAJORITY OF THEM) MUST GO THROUGH THE HANDS OF A MIDDLE MAN (AMCs) TO ASSURE THAT THE APPRASIAL AND THE APPRAISER ARE NOT BIASED OR UNDULLY PRESSURES TO "HIT" A NUMBER TO MAKE THE DEAL WORK.
ONCE AGAIN THE GOVERMENT GOT INVOLVED TO MAKE SURE EVERYTHING WAS ABOVE BOARD (TRANSPARENCY) AND ALL THE PROBLEMS WE ARE CURRENTLY SUFFERING THROUGH WILL MAJICKLY DISAPPEAR.
IT HAS BECOME MORE THE NORM WHEN A REALTOR SUBMITS A CONTRACT FOR THEIR CLIENT TO PURCHASE TO THE SAME BANK OR MORTGAGE BROKER THEY USED BEFORE AND INSTEAD OF GETTING A LOCAL AND KNOWLEDGEABLE APPRAISER, UP POPS THE HEAD OF AN "AMC" TO DECIDE WHO WILL APPRAISE THE PROPERTY. IN FAR TO MANY SITUATION THIS HAS RESULTED IN THE "AMC" CHOOSING AN APPRAISER FROM OUT OF THE AREA WITH LITTLE OR NO KNOWLEDGE OF CURRENT MARKET CONDITIONS OR ACCESS TO A LOCAL MLS SERVICE FOR UP TO DATE COMPARABLES. RESULT -- THE APPRAISAL COMES IN LOW AND THE SALE IS IN JEPORTY OF NOT CLOSING!
WHY DIDN'T THE AMC PICK A LOCAL APPRAISER! ANY NUMBER OF REASONS.
" A SURVEY OF APPROXIMATELY 30,000 REALTOR'S CONDUCTED BY THE NATION ASSOCIATION OF REALTORS MEMBERS, FOUND THAT, AS A RESULT OF THE INCREASED USE OF AMCs, FEE TO APPRAISERS ARE GOING DOWN, APPRAISALS ARE TAKING LONGER, AND, PERHAPS MOST IMPORTANTLY, DEALS ARE FALLING THROUGH WHEN APPRAISERS ARE CHOSEN WHO AREN'T FAMILAR WITH A MARKET AREA, EVEN THOUGH THE UNIFORM STANDARDS OF PROFFESIONAL APPRAISAL PRACTICE (USPAP) OBLIGATE AN APPRAISER TO WORK WITHIN THE GEOGRAPHIC COMPETENCIES.
ANOTHER REASON, THE APPRAISER IS NOT ON THE APPROVED LIST OF THE "AMC", THE PRICE THE LOCAL APPRASIER QUOTES MAYBE HIGHER KNOWING THE AMOUNT OF TIME IT WILL REQUIRE TO THROUGHLY INVESTGATE, INSPECT AND RESEARCH EACH COMPARABLE USED TO MAKE SURE THEY ARE IN THE SAME CONDITION AND NOT AN REO PROPERTY THAT HAS HAD THE INTERIOR STRIPPED.
THE NUMBER OF AMCs ARE INCREASING ALMOST DAILY MAKING IT IMPOSSIBLE TO SUBMIT A RESUME AND JUMP THROUGH ALL THE HOOPS REQUIRED TO BE APROVED BY EACH AMC.
NOT ONLY ARE APPRAISERS BEING PAID LESS, THERE ARE ALSO EXCEESIVE PRESSURE TO COMPLETE AN APPRAISAL IN AN UNREALISTIC TIME FRAME.
MANY AMCs ARE CHARGING ADDITIONAL FEES TO THEIR CLIENTS FOR THE APPRAISAL WHILE PAYING THE APPRAISER LESS.
WHAT TO DO?
REALTORS CAN STILL TALK TO AN APPRAISER THEY KNOW AND SEE IF THE INFORMATION BEING USED IN A APPRAISAL REPORT IS THE MOST RECENT AND THE COMPARABLES USED ARE AMOUNG THE BEST AVAILABLE SALES AS OF THE EFFECTIVE DATE OF THE APPRAISAL REPORT. WHILE NOT ALWAYS PRATICLE, SEE IF YOU CAN HAVE A SECOND APPRAISAL DONE BY A LOCAL APPRAISER OR INQUIRE WHY THE APPRAISER DIDN'T USE OTHER MORE SIMILAR COMPARABLES.
WHILE THE THINGS MENTIONED ABOVE WON'T CHAGE WHAT IS HAPPENING IN THE REAL WORLD -- PERHAPS THIS WILL HELP IN SOME SMALL WAY.
REGARDS,
GREGORY BOWER RD5791
PRESIDENT
BOWER APPRAISAL INC.