More Projected Delays In The Real Estate Transaction
When the government enacted some new rules about who is entitled to hire an appraiser to complete a market analysis on a property, there were many ramifications that were not initially considered. Now Fannie Mae and Freddie Mac have some mandatory guidelines, which again will have some positive and negative impact on the real estate housing market. Appraisers have been appraising properties of late without reviewing the purchase contract. This is now a new requirement for the appraisal companies. Any contracts and/or addendums associated with an offer on a home MUST be handed over to the appraisal company prior to completion of the appraiser. Any changes to these contract and/or addendums must also be provided to the appraiser prior to the final results of the comparative market analysis. Do you think this might put another delay on the timeline to close a transaction? Portions of a parcel may no longer be appraised. The current guideline states the appraised value must be for the entire parcel. Appraisers in the past were omitting comparable sales of foreclosed homes, REO properties and short sales. The new Fannie Mae and Freddie Mac guidelines require these types of properties MUST be included in the market value of the property. This could definitely have a negative impact on our housing market. You would think “common sense” would be considered in any new rules or guidelines. Here is another new guideline that is mandatory. If the appraiser has any financial interest in the transaction, the appraisal has to be verified by a third party who is “arms-length” from the transaction. If repairs are needed that affect soundness, structural integrity or livability, the property must be appraised subject to the completion of those items. This is where we got the FHA 203K loan. A supervising or review appraiser may sign an appraisal that was completed by an employee but if they do, they must complete their own inspection of the property. They cannot rely solely on the word of the employee. Since this downturn in the real estate market, the Home Valuation Code was amended to cease “favoritism” or the “influence” of market values. Protecting the consumer was also taken into consideration. These are positive changes but I still foresee this putting a damper on the timeline that it takes to close a transaction. See more information about az luxury home by clicking the link: az luxury home today. |