review appraisals ugggh!

[Mztk1]

There is some indication of what they mean in the attached files in this thread: New proposed Fannie Mae form

My report is more indepth than the proposed form. But it is interesting.

 

[Bearslide]

Fun huh Bear? What some appraisers don't understand is that the form is asking about values - not just a decline is "general market conditions". Someone here a few months ago said anyone in Florida not checking declining was an idiot. I replied, then I must be an idiot, because in my market area, I have yet to see a decline. Its VERY flat, but not declining. He asked about numbers of listings to numbers of sales...sigh...

Oh well. At least I am still having fun!

I wouldn't exactly call it fun......it is distressing to me to see so many people losing, or on the verge of losing, their homes. But then I have to remind myself they ARE the ones who bought way more house than they needed or could afford and took the gamble that the bubble was going to keep expanding. And of course, Tan Man was right there to assist.

In our area, the different sub-markets are all reacting very differently and a general market analysis is not enough - it has to be very neighborhood specific. Right next to the development I mentioned in my previous post is another development - older homes built by a local well respected builder, more local residents, smaller homes -1800 to 2400, versus the 2600-3800 of the development in trouble. That neighborhood has few sales - but it also has few listings. It is stable, long term residents - and when they do sell, they are showing, even in this market, a 3-4% increase yearly. They are also selling in 90 days or less, versus the 150-300 DOM for the development in trouble.

Going back to the OP and regarding reviews, I believe it is of utmost concern that reviewers be geo-competent - generalized figures do NOT paint the whole picture, at least not in our market. And this is where an AVM would be way off base - the two developments are right next to one another, so sales from both would be picked up. Best case, the AVM would show a stable market or general decline - when in actuality one is in decline, the other is slightly appreciating. While they share the same zip code, school district and proximity, they ARE two different markets, with two entirely different sets of buyers. An appraiser not paying attention or from out of the area or sitting behind a desk 3000 miles away is not going to know or understand the market factors - and they are going to call it wrong.

I have never understood the willingness of lenders to accept appraisals not geo-competent, much less reviews that are not.

 

[OSU Beavers]

Our "drive in from the next county" Slippy is marking INCREASING.