Appraisal Guidelines Are Tightening
The national real estate slowdown is making it increasingly difficult for appraisers to calculate the true market value of homes.
In addition to closed sales, appraisers are now requiring appraisers to consider:
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Pending sales
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Current asking prices
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Supply and demand
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Days on market
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Price fluctuations
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Defaults
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Foreclosures
Looking at historical data, especially comps that are six months old, is no longer adequate.
In my experience, six-month old comps are nearly useless in rapidly-rising or rapidly-declining markets.
In fact, anything more than 90-120 days is usually irrelevant in today’s market.
Realtors® have learned one little trick that’s driving appraisers crazy, and that’s the practice of removing a stale listing with a lenghy DOM (days on market) counter from MLS and re-entering it as a new listing to make it look “fresh”.
This trick may fool a few inexperienced agents and buyers, but anyone who knows the listing inventory will quickly realize what the listing agent has done.
September 23rd, 2006 Posted in Inside Real Estate
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