Low appraisals killing home sales or causing sellers to agree to lower price

dennis-norman-st-louis-realtor-REALTORS® surveyed by the National Association of REALTORS® (NAR), say that low valuations on appraisals are causing their seller’s problems ranging from delaying the sale to renegotiating the price to even killing the deal.  Of the REALTORS® that responded, 11 percent say a low valuation on an appraisal cost their seller a sale in the past 3 months, 9 percent said it caused a delay to a sale and 15 percent said a low appraisal resulted in the seller having to renegotiate and agree to a lower price. Continue reading “Low appraisals killing home sales or causing sellers to agree to lower price

The Top Four Appraisal Questions Sellers Ask; St Louis Mortgage Interest Rate Update

During periods of economic growth, when home values are typically going up, most homeowners do not question appraisals much.  In times of turmoil when property values are declining, home owners/sellers and even listing agents quite often question appraisals.

An appraiser is looking at several things when determining the value of a property: improvements, size and square footage of the living area, neighborhood amenities, location and the market trends around the area. It all boils down to comparable sales to the subject property.

Since the appraised value of home is a key element when considering a purchase or refinance, the following are the top four most common questions about appraisals asked by sellers: Continue reading “The Top Four Appraisal Questions Sellers Ask; St Louis Mortgage Interest Rate Update

What to do about a low appraisal?;  St. Louis Mortgage rate update

The sale price for a house is $200,000, but the appraisal comes back at $190,000. Should the borrower still try to purchase this property or just leave it be? This is not unusual circumstance common in today’s real estate market; appraisals are coming in conservatively.

What action should the borrower take when there is a mismatch between the seller’s asking price and the home’s appraised value? Remember, the maximum loan amount is based upon the lower of the sale price or the appraised value, whichever is less. Continue reading “What to do about a low appraisal?;  St. Louis Mortgage rate update

Tips to Avoid Appraisal Problems

Dennis Norman St LouisYou finally reach a deal with a buyer to sell your house, or strike a deal with the seller of your dream home, only to see the deal fall apart later when the house doesn’t appraise for the price that has been agreed upon…what are you to do? This is a plight that has become all too common today for many buyers and sellers. Why? Several reasons….appraisers have, after being blamed by many for causing or contributing to the downfall of the housing market, understandably so become cautious and somewhat conservative when putting a value on a home today. Not to mention, since about a third of the home sales are distressed sales and prices are still falling somewhat in many markets, the “value” of a home is a moving target.

What can home sellers and buyers do to avoid appraisal problems? Continue reading “Tips to Avoid Appraisal Problems

Making Appraisers the Scapegoat

Dennis Norman St LouisIt seems we always need to find someone to blame for our problems…

When it comes to the meltdown in the housing market that has taken place over the past three years there has been no lack of finger pointing by many inside and outside the industry as to factors that either caused or contributed to the collapse of the housing market. Sub-prime lending, Wall Street, mortgage fraud, the mortgage industry, banks, community reinvestment act, real estate brokers and agents, fannie mae, freddie mac, federal government over-regulation, federal government under-regulation, appraisers, unemployment, the economy in general, “flipping”, sellers, buyers and more have been blamed in one way or another for the collapse. In my humble opinion and, based upon my 30+ years of experience in the industry, I would say all the aforementioned played a part in the collapse and certainly no one thing could have caused this mess on its own, it was a combination of several things that led up to the “perfect storm”. Continue reading “Making Appraisers the Scapegoat

Bill in congress to stop HVCC gains momentum

Dennis Norman

Dennis Norman

By: Dennis Norman 

Since going into effect May1st the new Home Valuation Code of Conduct (HVCC) has caused controversy, been blamed for killing sales and seems it has everyone up in arms.

In late June I did a post on another blog about a bill,  H.R. 3044, that was introduced in the U.S. House of Representatives that, if passed, would put an 18 month moratorium on HVCC.

The bill was introduced by Representatives Travis Childers and Gary Miller.   Since being introduced the bill is gaining some support and momentum.  As of today there are 22 cosponsors that have signed on to the bill.  So far none of the representatives from St. Louis (or Missouri for that matter) have signed on yet but hopefully their support is forthcoming.

To see the representatives that have signed on as co-sponsors please click here.