Author: Bill Compton
Are Appraisals Holding Back Home Sales?Article Summary Based on the National Association of Realtors (NAR), appraisals are the newest hurdle in the housing markets slowdown in sales. While over 60 percent of real estate agents surveyed reported no delays in contracts over the past four months, over 15 percent found their sales to be affected.
The housing market seems to be gaining momentum and home sales seem to be back on track with the typical list of requirements including a firm closing price, the home inspection services process, mortgage approval and the appraisal. However, based on the National Association of Realtors (NAR), appraisals are the newest hurdle in the housing markets slowdown in sales. While over 60 percent of real estate agents surveyed reported no delays in contracts over the past four months, over 15 percent found their sales to be affected. Some of the factors at the root of the problem are that appraisers are not familiar with the area, lenders seem to be affecting the appraised values, inaccurate comparisons, and excessive mortgage lender requirements.
The primary problem seems to stem from the strict lending requirements and substantially affect the appraised value of a home. Foreclosures are being utilized for comps and can typically sell for 25 percent less than normal market value and short sales can sell for 20 percent less than market value. Other factors holding them up include banks taking longer to approve loans, slow turn around time from appraisers and appraised values failing to reflect the latest market trends.
But, it's not fair to place all of the blame on the appraisal process, as there are a number of factors affecting the real estate market at present. Appraisers have little say in the matter currently and are doing their best to try and meet the needs of the lending institutions involved in the transaction. Many appraisers are also having difficulties with the number of comps available to them and finding dwellings that are similar to the property that is being appraised.
There have been a number of fluctuations within the industry, and it can be difficult to meet the challenges that go with these changes. A requirement that should help most appraisers meet these changes is their continuing education classes. Not only are they beneficial for keep up their certification, it can also help them stay up to date with the current market trends that are affecting the appraisal industry.
The home buying process can be arduous and time consuming. From the search to find the perfect property, negotiate a fair price, bringing in a home inspection services company to inspect the property, applying for a mortgage, appraising the value of the home, there are many hurdles to overcome before being able to call a home your own. Home inspectors, often times, need to offer flexible inspection times and fast turn around times in order to accommodate lender requirements. The due diligence process can be quick, but it must be thorough and never skipped due to tight deadlines. A property inspection can save you thousands of dollars in future repairs if you know about the problems before signing all the paperwork and can get them completed by the seller.
Article Source: http://www.articlesbase.com/real-estate-articles/are-appraisals-holding-back-home-sales-6464681.html
About the Author
Bill serves as President and CEO of Champia Real Estate Inspections, LLC in Atlanta, GA. He served in the United States Navy and received his degree from the University of Richmond, graduating Magna Cum Laude.
An active member of Rotary, he has served as both President and Assistant Governor in Rotary International District 6900. As President of the Windward Rotary Club, Bill received the prestigious "Sheffield Award," in recognition of his leadership role. Prior to the home inspection business, Bill was a certified general contractor and served as CEO for Longview Properties Group, Inc., a luxury home construction company, and Compton Properties, LLC, a home renovation company.