It's not just conventional lenders -- which may be subject to the Home Valuation Code of Conduct (HVCC) -- that are calling for review appraisals in our Sacramento real estate market. Many FHA loans, once submitted to underwriting, emerge from underwriting with a loan condition for a review appraisal as well.
The HVCC was put into place on May 1 as a well intended but messed-up process to ensure accuracy and honesty in an appraisal. Now, conventional lenders must submit a request for an appraisal to an appraisal management company. This company then plucks an appraiser from a pool of appraisers. The appraiser you get could be inexperienced and clueless or experienced and familiar with your neighborhood. It's the luck of the draw.
Remember, appraisals are only an opinion of value. They aren't etched in gold. They are as good as the appraiser. On top of this, many appraisals are coming in low. Appraisers are scrutinizing value very closely and are much more conservative with their estimate of value than they were several years ago.
As one appraiser said: "If we would give $40,000 for an extra 500 square feet, a few upgrades and a pool 2 years ago, today that plus factor might be only $20,000."
Buyers are advised to expect delays at closings. Better yet, you may wish to ask for a 35- or 40-day escrow period in your purchase contract, just to be safe.
Elizabeth Weintraub is an author, columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you.
The Short Sale Savior, by Elizabeth Weintraub, available in bookstores everywhere and at Amazon.com.
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Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.
Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.
The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice. It could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.
