Friday, August 21, 2009
How Will Short Sales Affect Appraisals?
Dear Sue,
How would I know if I am “upside down” on my house? Several of my neighbors have sold their homes for half of what I paid.
What’s going to happen when I go to sell? How will the appraisal be effected? ??
Worried Walt
Dear Walt,
Great question. It happens to be one that many homeowners have been asking.
Home values tripled between 2000-2005. That rate of appreciation hasn’t been seen since the Gold Rush days.
However, since 2005 home values have fallen by approximately 50% and continue to do so. If you purchased a new home between 2000-2006 or maxed out your equity with a “cash out” refinance on your existing home between 2000-2009, you are probably “up-side down.”
If you plan on selling within the next 3-5 years a short sale may be necessary. The only way to know for sure is to get an estimate of value on your home. If it is less than what you owe the bank and your cost of sale combined, a short sale may be your best answer.
Short sale and bank owned property sales have dominated the local market since November of 2008. An appraiser cannot possibly ignore the distressed sales comps. They need to be factored into the appraisal.
If you enjoy your home and plan on living there for years to come, the market will have stabilized. In fact, you will aid in the stabilization by staying put.
Dear Sue,
I made a good cash offer on a short sale listing. After waiting for sixty days I received a verbal counter offer from the lender for $20,000.00 more than I offered.
I was very surprised and disappointed. Do I have to accept their verbal counter offer?
Can I counter back?
Anxious Andy
Dear Andy,
I would strongly encourage you to counter back, in writing, with your best offer. Support your offer by including the most recent comparable sales.
Remember, short sale negotiators are paid to negotiate. So negotiate. It could be a matter of good home $$’s and Sense!
Please visit HomeTown Realtors
How would I know if I am “upside down” on my house? Several of my neighbors have sold their homes for half of what I paid.
What’s going to happen when I go to sell? How will the appraisal be effected? ??
Worried Walt
Dear Walt,
Great question. It happens to be one that many homeowners have been asking.
Home values tripled between 2000-2005. That rate of appreciation hasn’t been seen since the Gold Rush days.
However, since 2005 home values have fallen by approximately 50% and continue to do so. If you purchased a new home between 2000-2006 or maxed out your equity with a “cash out” refinance on your existing home between 2000-2009, you are probably “up-side down.”
If you plan on selling within the next 3-5 years a short sale may be necessary. The only way to know for sure is to get an estimate of value on your home. If it is less than what you owe the bank and your cost of sale combined, a short sale may be your best answer.
Short sale and bank owned property sales have dominated the local market since November of 2008. An appraiser cannot possibly ignore the distressed sales comps. They need to be factored into the appraisal.
If you enjoy your home and plan on living there for years to come, the market will have stabilized. In fact, you will aid in the stabilization by staying put.
Dear Sue,
I made a good cash offer on a short sale listing. After waiting for sixty days I received a verbal counter offer from the lender for $20,000.00 more than I offered.
I was very surprised and disappointed. Do I have to accept their verbal counter offer?
Can I counter back?
Anxious Andy
Dear Andy,
I would strongly encourage you to counter back, in writing, with your best offer. Support your offer by including the most recent comparable sales.
Remember, short sale negotiators are paid to negotiate. So negotiate. It could be a matter of good home $$’s and Sense!
Please visit HomeTown Realtors
# posted by Sue Thompson @ 5:07 PM 
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