Special measures have been taken to help account for challenges facing the real estate market due to COVID-19. Here are the temporary flexibilities in place to facility the continuation of transactions for buyers.
Tag: appraisal
Appraisal Shortage Causing Delays In Home Sales
CNBC published an article on their Real Estate blog entitled, “‘Massive’ shortage of appraisers causing home sales delays”
Below are a few quotes that summarize the story quickly, in case you don’t have the time or patience to read the article yourself.
“The appraisal shortage is massive. You’re seeing significant delays, you’re seeing cost increases, you’re seeing rate [locks] expire,” said Brian Coester, CEO of Rockville, Maryland-based CoesterVMS, a national appraisal management company.
…when the U.S. housing market came crashing down, the number of appraisers has shrunk by 22 percent, according to the Appraisal Institute, an industry association. With so few new cadets, the current population of appraisers is aging. More than 60 percent are over the age of 50.
…the decline in new appraisers is largely due to new regulations…
…appraisers no longer see a need to pay apprentices, but at the same time, licensing requirements to become an appraiser include 2,500 hours of appraisal experience to be completed in two years as an apprentice.
In some of the nation’s hottest housing markets, where sales are up double digits compared to a year ago, the shortage means searching far and wide for an appraiser.
[Home] Prices could change in the course of two months, the delay time it is now taking in some markets to have an appraisal done. Mortgage rates are also starting to move in a wider range, and that makes rate-locks ever more important.
read more: http://www.cnbc.com/2016/09/27/massive-shortage-in-appraisers-causing-home-sales-delays.html
How Does Benchmark Respond?
Our 5 Core Values have served us well. We believe that they will continue to enable us to thrive, even in a complicated market.
We built our reputation and our business on these Core Values, one of which is Relationship. Another complimentary value that we hold dear is Positive Attitude. The combination of these can go a long way in ways you may never expect. So what is our approach?
To be as clear and transparent as possible in building relationships with partners in helping our mutual clients to get their new home as smoothly as possible. Just like we pride ourselves on being thorough and courteous for our clients, we strive to be open and thorough in our communications with partners.
We have an experienced staff who search daily to ensure coverage. We foster a positive relationship with our panel of appraisers.
Our appraisers prioritize us because we pay them generously and pay them quickly.
We have an advantage over appraisal management companies, as our appraisers receive the full fee, rather than just a percentage, and we have control over both the fee and the due date.
We have clear channels of communications with our appraisal department to quickly and efficiently resolve disputes and revisions.
Service is Our Trademark
For years, we have made the mortgage process look easy to those who have entrusted us with their home loans.
…efficiency and customer service is second to none.
Tom and his team make you feel like family and not just a number. He walks you thru all of your options and helps guide you thru the whole process. The attention he gives to his clients is untouchable. You will not get service like you get from him anywhere. 5 star all the way
…the Benchmark Mortgage Team are outstanding! From start to finish they kept us informed of the process, progress, and approvals. By far the most professional and expedient loan process I have ever been through.
We take service seriously. These are just a taste from a small collection of genuine testimonials giving by our Benchmark clients/fans. I encourage you to view more testimonialsmy testimonials. If you love being taken care of and like what you see, call mefind your branch or apply now
What is a Real Estate Appraisal?
A real estate appraisal is the process of determining the value of a newly build property, the resale value of a residential property, or evaluating properties for investment purposes. The appraisal is a report of many crucial details about the subject property and creates comparisons to similar ones in the neighborhood.
How Do Real Estate Appraisals Work?
When an individual applies for a mortgage, the lender will require the property to be appraised by one of their certified appraisers. The cost, normally around $300 or higher depending on the property, is usually paid by the buyer outside of closing.
The appraiser will start the appraisal with a thorough physical inspection of the property inside and out. Also, they will look at courthouse records, recent real estate reports, and other numerous sources for more information on the subject property.
There are two different methods for conducting appraisals for residences:
The sales comparison approach is based upon comparing the subject property with a few similar homes that have been recently sold in the neighborhood. These are often referred to as the comparables. Analysis will focus on comparing specific bits of information, such as the square footage, style, age, lot size, and various other features of the homes.
The cost approach is mostly used for homes that have just been built and based upon the reproduction costs. This analysis will involve the appraiser estimating the cost to cover replacement of the property if it were to be destroyed. Land value and depreciation can also be added in to determine the value.
What is Included in an Appraisal Report?
The real estate appraisal report will contain:
- An explanation of the method through which the appraiser ended up with the property’s value
- Description of the size and condition of the house, along with any improvements that have been made recently and permanent fixtures
- Accounts of any serious structural problems that were found through the inspection
- Information about the surrounding neighborhood and recent market trends in the area
- Comparisons with other residences surrounding the subject property that will support the market value appraised
- Photographs, maps, or sketches of the subject property and its land
Overall, a real estate appraisal is more than just another cost or hassle added to the buying process. It is protection that will help everyone make informed decisions, so that a fair and reasonable price for market value can be formed.