% of appraisals done for purchases?

[Frederick R. Ruffell]

Hi everyone,
I have been absent from the forum since before christmas (whole lotta change!), as I have been very busy. Things seem to be slowing down now. Is it the same for all of you. Also, Maybe 3% to %5 of my work is for purchases, How about you? Wayne does this qualify as a poll and is there still a spell check?

P.S. I had some difficulty getting my old user name, Federick Ruffell, to work so I am now using my initials FRR.

 

[Daniel Williams]

Welcome Back Fredrick :!:

My work is about 3% to 5% Sales
The rest Refi work :evil:

 

[Bob Ipock]

I would say 5-10 % purchases, 10% divorce and estate work, 5 % reviews and most of the rest is re-fi work.

Purchase appraisals require a lot of contact with r/e agents which I don't care to do. You have to get real friendly with the agents which I just am not willing to do.

 

[Tim Hicks (Texas)]

25% sales, 75% refi's. What does that tell you about our business when rates go up?

 

[Bob Ipock]

Tim,

I know what you are saying. It is not as bad as you might think (from my experience in last 12+ years).

Many homeowners now use their home for a piggy-bank. When they need money they re-fi, get a second mtg. or equity line. Rates are not the driving force for these folks...getting some cash in hand is.

Also, many of the poor credit risk folks they used to borrow 2, 3, 5, 8 thousand dollars and sign a note...now find that the "loan company" type lenders now want their HOUSE as collateral and a mortgage loan is done.
Many of these folks will ALWAYS be paing 5-10 % above the lowest rates
being offered to excellent credit risks.

Many of us older folks have seen rates go up and down with minimal effect of re-fi activity among the sub-prime market. The sub-prime market keeps getting larger as people are saddled with debt and there are fewer borrowers with AAA credit out there.

Low rates will result in some decline for appraisers....but it ain't as bad as you might think.


Bob Ipock

 

[Tim Hicks (Texas)]

We can only imagine how bad it is in some states. Texas is still an 80% home equity loan state. I hear that some states will go up to 125%. Therefore, the lenders for home equity loans want the appraisers that can get those values "up there". We have so many home owners with no home equity that we get blamed because they can't get money. We have borrowers putting 3-10% down and expecting to get home equity loans the next year. I generally hate the refi market for that very reason. I have enough trouble justifying their original purchase price a year later!

 

[Bob Ipock]

Re-fi, purchase, divorce, estate.....does it matter?

We are always between a rock and a hard place with pressure from both ends. No matter what we do....someone will be unhappy.


I feel your pain brother Tim!

 

[Will Granger]

It's all Greek to me. Getting close to geek actually. Bob is right. The pressure is on us to help bail out insatiable spending habits. This should give you and indication of who is going to vote for what when retirement hits for the majority of the spenders. Rich folks got money because they invest it. I received an appraisal order last week for $135,000 sale price. The asking price was $132,900. I broke the rules and told the selling agent there was a high probability this was not going to fly. I asked him if he wanted me to continue. He said do the best (worst) you can. I came in at $132,000. There was a mushroom shaped cloud over my house this afternoon. Same old story........

 

[Bill S]

60% of orders are for purchases, about half of that is FHA.

 

[MarkRichmond]

5-10% Purchases for me