Category Archives: Appraisels

By: Marty Griffin

In real estate it has always been about “location, location, location”, and then along comes REO.  Now it’s about “price, price, price”.  We all know that “price” sells; it always has but let’s not get too carried away.  There is a “great price” and then there is a “ridiculous offer”.   It is so tempting in these challenging times to see just how low the seller/bank will go.   This is not about throwing a dart at a price on the wall.  It pays to work with an agent who understands the subtlety of appraisals, the net carry value (what is owed the bank by the previous owner), the value of the neighborhood, etc.  If you are serious about a foreclosure, do your homework.  Make an offer that makes sense.  Demonstrate to the seller that you are a serious buyer not just a bottom feeder.  When the seller knows you are serious, thoughtful negotiations will begin.  Throw out low ball offers and the seller will more than likely come back to you at full price.  A good deal is a good deal for everyone involved in the transaction.  The buyer wants to feel like they got a good value at a great price.  The bank wants to feel like it has done its fiduciary duty and accepted the best deal it could, under the circumstances, for its stockholders.

With that being said, there was some good news about the buying process this past week. 

The National Association of Home Builders will be tackling four issues that are critical to the housing sector which comprises more than 15 percent of the GDP.

 (1)   The NAHB is calling on congress to extend and enhance the $8000 first time home buyer tax credit.  They are calling for an extension of the bill to November 30, 2010 and make it available to ALL buyers of principal residences.

 (2)   Correct the faulty appraisal process.  The inappropriate use of distressed and foreclosed sales as comps in determining home values is hurting home values and killing home sales.  NAHB is urging Congress to work with housing and federal regulators to adopt and enforce clear, concise regulatory guidance that will allow appraisers to develop realistic valuations based on sales that are truly comparable.

 (3)   Improve housing credit conditions.  The NAHB is calling on Congress to urge regulators and the banking industry to end the stranglehold on acquisition, development, and construction loans that has emerged as a major impediment to the housing recovery.

 (4)   NAHB will also co-sponsor Net Operating Loss (NOL) relief legislation in Congress.  This would help prevent further layoffs in building and other industries hit hard by the recession.