The Appraiser's Blog...

Well here we are just a bit over a week away from last post and things are a changing. You may or may not have heard that some of the sub-prime lenders are taking it square in the face this week. Many invertors appear to be pulling out of this area of the market due to understated figures and many, many first payment defaults which causes the lenders to have to buy back the loans and this effects their liquidity. I guess this is bad and good in a way. The market is correcting itself but at the same time it is taking away a lot of options for those that are on the borderline sub-prime fence. Kind of sounding like a few bad apples are running the bunch. This will definitely have an effect on appreciation of homes as there are less potential buyers in the pools so sellers are going to have to reduce prices to get there homes to move. On the flip side this could be a great time to buy a house if you are one of the good credit folks. It may be a more important time than ever to get an accurate appraisal on a home you are purchasing! If the appraisers is using comps from 8 months ago on your appraisal you are likely paying too much especially if it is a townhome or a condo. On another note...

HOME INSPECTIONS. Appraisal WerX has a running discount with it's sister company Inspection WerX. If Inspection WerX does the home inspection on the property and the buyer decides to move forward with the transaction Appraisal WerX will discount the appraisal $100 as we already have all the info we need to complete the appraisal. This is very convenient a loan officer as two birds can be killed with one stone. On top of that we will have it back faster as the field work is already done. Your borrower will love it to as they get to save some $$$.

That concludes this blog. Till next week...

Lanny

Well I guess the ever changing world of the internet is pushing me to start one of these blog deals. I am not sure how I feel about these yet but I guess we can give it a whirl and see what happens. We will be posting issues that may be pertinent to your industry in the mortgage world and our industry in the appraisal world.  When new blogs are posted you will get an email update sent to you with a link so if you want to take a look at them feel free to browse to it.

If you are reading this you were included in the initial email update to announce the blog. If you want to continue receiving an email update when a new blog has been posted just follow the link to subscribe or add to your favorites in your browser. Out of courtesy to our clients we will only announce this one time to all.

First off lets address more daylight... The United States Congress has extended Daylight Saving Time (DST) this year by approximately four weeks. Spring ahead those clocks on March 11th, 2007 this year. Hopefully that will get us back to that 9:30 pm daylight feeling we enjoy in the middle of summer. Remember some of your electronic devices may not handle this DST change so watch em close so you don't miss an important event.

Next up.... Some of you maybe wondering about appreciation of your customers homes.  The greater metropolitan area definitely has seen a slow down. There are some pockets of homes that are experiencing good appreciation still but those are much more sparse these days. The 10% per year homeowners anticipate is not there anymore. In fact some areas are flat and some are even experiencing a decline in home prices. One sector of ownership has taken it hard in the cheek in the last year or so. Condos, and even some townhome developments. There has been such a building boom with these type homes that they have run dry on buyers. No buyers means that the builders are having to lower the price of the new models to reduce inventory. This in turn lowers all of the existing home listing prices around them, thus lowering prices around the area. One reason these prospective buyers have dried up is higher interest rates. Many renters could afford to buy these homes at historically low interest rates. As rates rise renting looks more attractive. Another reason is going to be the withdrawal of "interest only loans" which allow buyers to purchase more home than they can afford. There are other factors too but I don't have all day to write! For a loan officers convenience we can look at some comparables in your customers area to see if their idea of market value is in the ball park. Just give us a call and we will see what we can do. There are certain restrictions to this service and we can explain these when you contact us.

That is it for this "blog". We will try and update this weekly or so. Until next time enjoy the snow we only have a month and half left to go till the windows come down in the car!!!

Lanny Freng
Owner-Appraisal WerX