Dec
29

Appraisal Challenges Coming in 2015

Changes are in the wind for appraisals in 2015 as per Fannie Mae and Freddie Mac.  It seems these giant mortgage lenders are getting nervous about the rebounding housing market especially in certain states such as California.  Therefore, Fannie Mae and Freddie Mac will require additional comparable properties once the appraisal is completed to confirm the comparable properties were indeed the right properties to use for the appraisal in the first place.  This will indeed make it harder on appraisers to justify the home value as they will need to provide this additional documentation.  And this most undoubtedly means a higher cost for the appraisal to compensate for the additional hours involved for research and analysis of those additional comparable properties.  So what does this mean for Sellers and Buyers?  It means Realtors will have to be much more comprehensive in the comparable properties used in creating a market analysis.  And it means a smart Realtor will have these additional properties identified and available for the appraiser when they visit the property.  It is best for the transaction if the listing agent for the Seller makes it a point to meet the appraiser at the property and provide the data necessary for the appraiser.  Not doing so says in essence the listing agent does not care if the appraised value comes in where the transaction needs it to.  Make sure the agent you select to list your home for sale agrees to provide all the necessary comparable data for the appraiser and further agrees to meet the appraiser at the property.  Few listing agents do this today as they very often think their time is more valuable than your real estate transaction.  Don’t let this happen to you!  You have only 1 chance to score with the appraiser, and doing the homework correctly and presenting it in person to the appraiser is crucial to the successful sale of your home.  Following these steps is the best way to insure your transaction does not get derailed in the process.  To learn more, take a look at the video below posted by the National Real Estate Post.