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Low Appraisals Keeping Downward Pressure on Home Prices

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scritto da: slc - Visite: 0 - Numero di parole: 351 - Data: 26 Jan 2012 - Ora: 10:48 PM 0 commenti

According to the National Association of Realtors, some agents surveyed reported sales falling through because appraisers are coming in with light numbers. I speculate, as do others, that the banks are leaning on them so as to minimize risk in the Tampa real estate market. While this is understandable to a degree, the low valuations are yet another factor that further depress prices, reduce velocity of Tampa homes sold and undermine a return to market equilibrium.

Professionals accuse lenders of encouraging their appraisers to base valuations solely on distressed sales, which obviously yields a much lower price. Because of this, four states are considering legislation that would prevent them from using distressed sales when calculating the value of a property. Of course the Mortgage Bankers Association claims conservative estimates are needed and that it will prevent future problems. However they are ignoring the tighter lending standards already put into place, which is often weeding out credit worthy buyers.

There is no doubt that the appraisal system was broken and contributed to our market crash. It’s also no secret that many sellers have a difficult time facing the sobering reality of true market value these days in Tampa Bay; it’s a tough pill to swallow. However the banks seem to be taking this to the opposite extreme as a result, which is only compounding the problem.

When listing or buying a property it is essential to have a Realtor who knows the community, understands the Tampa real estate market and can price a home correctly. If you are interested in buying or selling real estate in the Tampa Bay area, I would love the opportunity to work with you. Please call me 813-924-4468 or use the contact form on the left side of the page.