What's my home worth... and what will it appraise for... often two different answers
okay I couldn't resist sharing this....
Foreclosures Weigh on Home Appraisals
Approximately 25 percent of real estate practitioners say low appraisals have broken up deals, according to the NATIONAL ASSOCIATION OF REALTORS®.
While foreclosed properties typically are not included in a comparable sales analysis, they account for about 40 percent of home sales -- more than 50 percent in some markets -- making it difficult for appraisers to value properties not in the foreclosure process.
Additionally, new industry rules that require mortgage lenders to order appraisals through in-house staff or appraisal management companies means more appraisers without knowledge of the local market are making valuations.
While Zillow.com says non-foreclosures are selling for upwards of 30 percent more than foreclosures, a study of 20 years of home sales in Massachusetts by Harvard University's Joint Center for Housing Studies indicates that dwellings closer than 100 yards to a foreclosure lose about 1 percent in value.
Source: USA Today (01/04/10)
Ironically although we live in a supply and demand economy and many buyers are able and willing to overbid a property in order to get their offer accepted... the appraisals are sometimes keeping the values "artificially" down. This can have a very limiting effect for VA, FHA and conventional buyers, and "owner occupants" and can raise opportunities for investors and cash buyers and "flippers". Tough times for homebuyers... hang in there.. and have faith!
Foreclosures Weigh on Home Appraisals
Approximately 25 percent of real estate practitioners say low appraisals have broken up deals, according to the NATIONAL ASSOCIATION OF REALTORS®.
While foreclosed properties typically are not included in a comparable sales analysis, they account for about 40 percent of home sales -- more than 50 percent in some markets -- making it difficult for appraisers to value properties not in the foreclosure process.
Additionally, new industry rules that require mortgage lenders to order appraisals through in-house staff or appraisal management companies means more appraisers without knowledge of the local market are making valuations.
While Zillow.com says non-foreclosures are selling for upwards of 30 percent more than foreclosures, a study of 20 years of home sales in Massachusetts by Harvard University's Joint Center for Housing Studies indicates that dwellings closer than 100 yards to a foreclosure lose about 1 percent in value.
Source: USA Today (01/04/10)
Ironically although we live in a supply and demand economy and many buyers are able and willing to overbid a property in order to get their offer accepted... the appraisals are sometimes keeping the values "artificially" down. This can have a very limiting effect for VA, FHA and conventional buyers, and "owner occupants" and can raise opportunities for investors and cash buyers and "flippers". Tough times for homebuyers... hang in there.. and have faith!
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