Data Cancer found....

[J Grant]

Imo, it is not a matter of whether it is typical or atypical. When a specific type of financing, in this case, loans using WAIVERs, where the valuation is e greenlighting any purchase price (including the upper end ), as long as the price falls in a Fannie or freddie AVM range then the price can be over the market- we will never know if an appraisal might have been lower than the purchase price. They avoid getting an appraisal to prevent that from happening. That will affect all prices because that has not been the case on any large scale until very recently

 

[George Hatch]

Is it your opinion that appraisals are the main factor which impede the pricing trends from running out of control?

 

[J Grant]

Is it your opinion that appraisals are the main factor which impede the pricing trends from running out of control?

Imo, appraisals do prevent prices from extreme volatility or moving steeply /runway train speed in one direction or other - and can keep prices closer to a MV as the definition terms it-r that individual

how well that work is, IMO, compromised by there still being pressure to hit an SC price - even with that, the appraisal for MV can differ from a sale price, whereas in a WIAVER, once it is granted, there is no difference between the value and the sale price.

 

[Mejappz]

Not good. The largest home should be selling on the lower side of $/sf. This data cancer might even be worse than originally thought. Even with a retention pond view - which in my market is a relatively minor adjustment, if any at all.

You won't believe this, but I just completed an assignment last week in the ghetto, and I've noticed that prices have increased by 22% over the past year. With the (GSEs) holding back real estate-owned (REO) properties and these waivers contributing to rising prices everywhere, it's no surprise that we continue to see price increases.

 

[J Grant]

Is it your opinion that appraisals are the main factor which impede the pricing trends from running out of control?

I dont' know if it is the main factor, but it is one factor

Lending at super low or super high interest rates or predatory or odd terms can send prices plunging or climbing fast and away from MV - but part of lending is valuation and when that is compromised, then it will have some degree of affect on prices

 

[George Hatch]

You won't believe this, but I just completed an assignment last week in the ghetto, and I've noticed that prices have increased by 22% over the past year. With the (GSEs) holding back real estate-owned (REO) properties and these waivers contributing to rising prices everywhere, it's no surprise that we continue to see price increases.

We've seen such areas enter into increase last and exit first. That has happened in each RE cycle I've seen.

How much of that increase is attributable to waivers vs how much attributable to supply/demand?

 

[George Hatch]

Cash sales and low LTVs show up in virtually all of my datasets.

 

[TerryRohrer]

Imo, appraisals do prevent prices from extreme volatility or moving steeply /runway train speed in one direction or other - and can keep prices closer to a MV as the definition terms it-r that individual

how well that work is, IMO, compromised by there still being pressure to hit an SC price - even with that, the appraisal for MV can differ from a sale price, whereas in a WIAVER, once it is granted, there is no difference between the value and the sale price.

What happened to price is a fact and value is theoretical? It is your pronouncement that the price becomes the value (or do you have a source for that?). As far as I'm concerned, appraisals should have no bearing on prices. Borrowers should be held to their offers if the bank agrees to finance the deal, rather than bailing them out of their stupidity. But appraisers intent on making the market are every bit as wrong as whatever the GSEs are doing to the market.

 

[George Hatch]

Appraisals don't get used to establish prices. They get used to establish LTVs and mortgage decisions. That's a significant distinction.

 

[Joyce Potts]

If appraisers are now suggesting that a waiver results in a non arm's-length transaction, I'm not sure we're even at a place where anyone will agree on anything.