I know this article is dated 4/14/2011, but I haven’t seen anything to change its timeliness or accuracy. The policies are still in place by the lenders and the AMC’s that have resulted in many appraisers, myself included removing themselves from being involved in that segment of the appraisal market.

Sadly most home buyers and their Realtors don’t have an option of opting out of the system. I am still reminded of a conversation I had with a Realtor in Danbury when I was calling them to verify some information on a pending sale. The first words out of his mouth was that I don’t like appraisers anymore. Well after that delightful opening we got into his reasons for it. It seems that the appraisers he didn’t like were the ones hired by AMC’s who had no knowledge of his market and had no time to learn about it because of the time restraints put upon them by the AMC’s. So consequently they were grabbing the first three comparables that looked good not knowing if the property had been distressed or had some physical problems and consequently coming in with a lower then warranted appraisal. Even in the buyers market that we have all been involved in some how these appraisals said a lot of his sales were over priced. I kidded with him that they must have thought him a great salesman, probably not one of my better jests.

House Appraisal PictureI could feel his pain and understood the problems he was having. Unfortunately it didn’t make him feel any better to let him know I agreed whole heartedly with him and that I didn’t think it would get any better as the management groups typically only had two qualifications for assigning appraisals. Can you do if for a fee that is between 1/2 and 2/3′s what the appraisers used to get and often half what the borrower is being charged for the appraisal. And can you do it in two days time.

As a result of these two questions the more experienced local appraiser’s often declined to do them and found more lucrative work, leaving it to inexperienced appraisers, trainees or those that were under so much pressure to complete higher volumes of work to survive and to complete them in a time frame that is not always possible to do a reasonable job. Thus the very legislation designed to insure better appraisals has resulted in inferior ones, but at a much higher price.

I am curious if the Realtor’s that read this have found any improvements over the past year. Your feedback would be greatly appreciated.

 

 

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Mortgage Applications Increase

by Dan on May 16, 2012

Last week saw mortgage applications increase by 9.2% . This was driven by an increase in refinances, which grew to 74.9% share of total applications versus the prior weeks 72.1%. The refinancing increase appears to be driven by the record low 30 and 15 year fixed interest rates.

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Real Estate Video on Demand Network Will Launch in September

May 15, 2012

This item caught my eye (see press release below) and I was wondering what the Real Estate Professionals think of this idea. Is this something you will consider incorporating into your marketing? Do you feel it is a positive for selling houses or will it take away some of that personal touch? How about potential [...]

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Wanted Real Estate Related Professionals

May 14, 2012

As much as we enjoy keeping up on the Real Estate industry’s reports, financial data and statistics, when it comes right down to it Real Estate is as much about people as it is about the land. So I would like to start featuring real estate professionals in this blog on occasion. Since all of [...]

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Wadsworth Atheneum Second Saturdays

May 13, 2012

If you are looking for a fun family event that is like on your wallet mark your calendars for the second Saturday of every month. Because that’s when the Wadsworth Atheneum offers free entrance from 10 to 1. The day is geared towards family with special activities including creating art, music and more. The Wadsworth [...]

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DPM Tree Services Torrington

May 13, 2012

Since its Sunday and Real Estate news is slow, I thought I would take a little time to feature a local business that has been giving back to the community. The Torrington Register had an article today (Torrington tree service owner rescues cat for free, does about 100 rescues annually) on a local man, David [...]

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Fixed Rate Mortgages Hit All Time Low

May 12, 2012

Freddie Mac’s Primary Mortgage Market Survey shows 30 year fixed rate mortgages hit a new all time low at 3.83% interest for the second week in a row.  Last weeks 3.84% set the previous all-time low.  The rates are down  .8% from one year ago. The low rates have contributed to a very favorably market [...]

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FHFA Shows 4th Quarter Decline in Connecticut House Prices

May 11, 2012

The Federal Housing Finance Agency. Shows a fourth quarter decline in single-family house prices for the fourth quarter of 2011 in their Housing Price Index. The index measures average price changes in repeat sales or refinancings on the same properties. Connecticut had a 2.98% seasonally adjusted decline in value in the fourth quarter. This is higher [...]

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Home Affordability Index at Record Levels

May 10, 2012

The Fiserv Case-Shiller Index shows home affordability at the  highest level since their records started in 1971. This index examines home prices in 384 metro areas across the United States, and the results are very upbeat for home buyers. Firstly, conventional mortgage payments on median-priced housing is just 12% of median-family income.  It has never been [...]

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38 Connecticut Towns Going Through Revaluation in 2012

May 7, 2012

This year is a very active one for town Real Estate Revaluations.  A total of 38 Connecticut towns and cities are currently going through revaluation to meet the October 1st Grand List date. If you are located in any of the following communities you will find yourself with a new assessment shortly.  Although most assessments [...]

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