Establishing Values

The appraisal takes about 1 month to complete, most licensed/certified appraisers are  busy and the underwriting requirements are often what make the appraisal costly. The house may sell in a month now, but the loan approval, lender's underwriting and the appraisal take weeks. 

Now with a slowdown in refinance and purchasing of a home, the appraisal process begins to change too- as sales data increases the comparable of the neighborhoods change too.  The statistics of median price, cost per square foot, upgrades, amenities may begin to be adjusted downward too . You may have more time to consider exactly what you want to buy for a lower price. 

The markets have definitely changed, slowed and softened. Almost 60,000 sales fell through in October, according to Redfin Brokerage.  Thats 17.9% of homes that were under contract now cancelled, 37% of small real estate firms couldn't pay rent in October according to Alignable, an online referral network.  Small homebuilding companies are suffering the greatest losses in homebuilding- as larger builders take 57% market share. The existing house markets are changing rapidly also. - down 14% November sales.

This housing correction will take several months to correct from high inflationary prices, seller recognition, Covid catch up building delays, increased interest rates and demand.

Once buyers and seller understand the market changes and really see it, it is 2 months already into it. It has about a 4 month delay before the consumer feels it- look to February 2023. Then who knows- 

Did you know some appraisers are also brokers, and have additional education of 2000 hours, just to the qualified to appraise the property? Besides a college degree, and additional certifications or national appraisal institute education, appraisers have a lot of knowledge of local markets. Choose your appraiser carefully.

WHAT IS THE VALUE OF YOUR PROPERTY?  The APPRAISER  can help the buyer understand the   costs related to the property, and market fluctuations. Sometimes homeowners need  a specific type of  appraisal because of certain circumstances- banking requirements, lender  requirements, refinance ,bankruptcy, death requirements/  inheritance, expert testimonial, or insurance. Sellers may need an appraisal before selling to see the value of their home and understand market changes. The buyer can trust a certified appraiser's opinion over the internet value- which sometimes does NOT reflect our local market. Appraisers can help you understand comparable sale differences. You get what you pay for- Make sure you understand what you need. Call for a consultation or review , if you are not sure what you need. In these volatile market times  DON'T wave your appraisal. It is for YOUR protection as a buyer.

alone should Mortgage or No mortgage is the question of the day? As you reach retirement you may be considering this option. Here are some things to consider-Are rates low enough to give you a little extra income each month? It is advisable to refinance before you retire because the W-2 income making is easier to get approved. The economic climate causes several factors to change also:  influences such as, interest rates, availability of money, status of your job, retirement income pressures, and taxes. Do you want to make a payment during your retirement? Are you staying in your house and committed to continue with the costs of taxes, repairs and maintenance? What type of loan do you have? interest only? how many years are left to pay? Do you know your monthly budgets in case you DO have an emergency? What is your refinance break even cost to gain back the cost of the new loan? That alone  should help you make a good decision. 

 There is a lot to think about when  buying a house. Interest rates have doubled in the last year and houses are in an inflationary period. Always wait it out or consult an appraiser.