VA Flood of Tidewaters

[Zoe]

No way to base "market value" opinion by FNMA definition on a single buyer and seller. It is just not possible. Real estate agents know that.

 

[glenn walker]

So you

No way to base "market value" opinion by FNMA definition on a single buyer and seller. It is just not possible. Real estate agents know that.

So you have a unique value ) LOL

 

[Ariba]

No I am not a hit the Bulls-Eye guy-But if I was coming in short on a high percentage of appraisals in a red-hot market I would certainly have to sit back and ask myself if I was out of touch with the market trend.

OK. So how many Tidewaters or % of appraisals have you done in invoking Tidewater in the past 12-months?

 

[glenn walker]

OK. So how many Tidewaters or % of appraisals have you done in invoking Tidewater in the past 12-months?

I am not hear to debate you -The question the OP had was that recently he was getting a large percentage of Tidewater requests. The answer depends on what kind of market trend he is working in ? He maybe in a market where it's warranted or he may be in an-area where he is behind the curve. Him and others in his immidiate market area would have to analyze his methodology to see if it was accurately being employed. In my area for at least the last 48 months we have been going mostly up. In the last 6 months-we have 50 buyers to 5 listings and average sales price of between $400,000 to $500,000 so it's almost impossible to have a problem with the final OMV. The OP may have a legitimate reason for why so many of his are coming in low and he should do whatever his data is showing him but his situation poses the question of whether his market has a disconnect from reality, it's totally out of equilibrium and going through a transition, are buyers acting in a irrational exuberance. My guess is like many markets low down buyers are buying a 2.5% to 3% mortgage not real estate : ) LOL

 

[Alsie35]

i had some scum bag mortgage brokers call me 'conservative' back in the hay days of the early 2000's. a couple of them went to jail.

That's what our company reputation was when I worked at World Savings Bank in the 2000s. We were supposedly "conservative" in our valuations. We preferred to say that we got the value "Right".

 

[glenn walker]

I worked f

That's what our company reputation was when I worked at World Savings Bank in the 2000s. We were supposedly "conservative" in our valuations. We preferred to say that we got the value "Right".

I did work for World Savings in Ontario California in the eighties before licensing. Funny thing was loan officers also did appraisals on some houses, they drove bye, took a poloroid photo and looked up some sales and yes they were conservative.

 

[Carnivore]

Spoking like a real number-hitting appraiser. Probably never came in low on an appraisal and has no clue what Tidewater is.


There must be a glut of houses in some states that they are moving from.

Well People are migrating away from High Tax States to more tax friendlier States. Also immigration legal/illegal is increasing the total Population.

Something to think about; People live longer now so they stay in their above grade homes a longer. Many of their Kid's are being thrown out of their mommy and Daddy's basement.

Across the US many houses are torn down , they just wear out. Urban Business, industrial Growth is often built in place of torn down neighborhoods.

FTR Mr Glenn is NO NUMBER HITTER. He is highly experienced Appraiser. He knows what he is doing.

 

[djd09]

edit

 

[Terrel L. Shields]

appraisers generally do not adequately consider market conditions.

If you use recent sales, then "market conditions" are a nothing burger. Pushing the envelope is just what Realtors do.

You look at the current supply and demand dynamics and the only logical conclusion is sharply higher prices.

When you see the local dynamic at odds with the general market, then likely the local dynamic has too few sales to confidently assume it represents any "market condition" issue. It is simply random noise in the market. "Fooled by Randomness" as the book says.

So you have a unique value ) LOL

You know how you get a unique value don't you? Unique up on it. Know how you get a sane value? Sane way.

 

[A K]

If you use recent sales, then "market conditions" are a nothing burger. Pushing the envelope is just what Realtors do.

That is true. But define "recent". Sales that closed like within the last month is recent. A sale that closed a month ago is reflective of two or three months ago. A sale that closed three, four, five, six months ago is not "recent".

You can't ignore pendings. Need to call the agents for pendings and they will at least tell you how many offers they got. If you are lucky you might get the contract price.