|Posted by Key Yessaad @zenkey on June 23, 2012 at 2:10 PM|
Since the height of the Real Estate Market, nearly a decade ago, many have been itching for a bottom in the sliding prices and wishing for the tranquility of stable prices. Well, many markets are now experiencing the beginning of stability – in essence some sellers, in many markets, are starting to see multiple offers and price declines have either stopped or are not as pronounced.
Good News Right?
Well, there is a little problem that could turn out to become the biggest challenge of 2012-2013 – Appraisals.
Think about what happened during the lows of the Real Estate Markets, known as the Housing Crisis; New Rules and Code of Ethics were put in place to force Appraisers to become more independent of Lenders and to include Foreclosures and Distressed Properties in Comparables; and this is leading to lower appraisals. These lower appraisals are going to rear their Ugly head in strong markets as well.
You can tell that this is going to be a challenge when you hear a frustrated Seller tell his Real Estate Agent:
“Who sets the price of a Home, the market or the appraiser?” and commenting further: “Isn’t a property worth what someone is willing to pay for it?”
The above Seller is absolutely right if he/she was dealing with a Cash Buyer; but most Real Estate Transactions involve a Lender, and the cozy relationships appraisers and lenders had in the early 2000’s has long soured, and is now landing in the lap of Real Estate Professionals who are the glue to these transactions.
Real Estate Brokers and National Real Estate Franchises must train their Agents how to navigate these new challenges and coach them on how to dispute Appraisals that are not in keeping with the market fundamentals; but mostly how to become better negotiators when there challenges arise.
Categories: Real Estate Business