Home Appraisers Trust Housing Market Improvements:
A recently completed survey conducted by United States Appraisals found appraisers overall are encouraged by the current housing market.
Home Appraiser Housing Market Confidence Up
When responding to the question, “What is your current level of confidence in the housing market,” 54.7 percent of respondents answered mildly or moderately strong, while 24.9 percent were neutral. The survey was completed by United States Appraisals’ nationwide panel of residential appraisers. Intent to conduct this survey quarterly to monitor trends and opinions in their appraiser network will follow significant trends and housing market improvements after our home appraisals systems have come under more scrutiny.
"Appraisers tend to be realistic, focused on their local markets and unmoved by news stories and national numbers. We believe they provide a good gauge of the status of the housing market. After the last few years, a mildly strong level of confidence shows some definite improvement in appraiser attitudes." ~ Aaron Fowler, president of United States Appraisals
18.5 Percent of Twin Cities Appraisers See Significant Volume Increases In Home Values
Opinions were slightly higher regarding home values and housing market improvements with 46.2 percent of home appraiser respondents reporting a mild increase in property values they are requested to appraise in their given area. Of those surveyed, 15.6 percent of the home appraisers are witnessing moderate home value increase, while 24 percent weren't seeing a change. Owning a professional and balanced approach to the Minneapolis real estate housing market in general, most appraisers reported increased order volume, as 26.1 percent saw upward numbers, 17.8 percent saw moderate increases and 18.5 percent reported significant volume increases. A lower percentage at 15.3 of respondents reported some reduction in their order volume.
Appraisers See Stronger Buying Activity
"Twin Cities home appraisers are seeing significantly more new Twin Cities home sales in the middle and upper end of the home value range, while the supply of existing housing is down noticeably. The number of new homes for sale appears to be improving slowly," says Jenna Thuening, owner of Home Destination
A cautious approach amidst widespread optimism seems prevalent in the Twin Cities housing market. Housing inventory is down and Minneapolis real estate buyer activity is strong creating a call to prospective sellers to consider listing their home now. Higher than average numbers of cash sales exist, and interest rates remain low and compelling for those with sufficient home equity to become move-up buyers.
“We all know the real estate market is a zip code by zip code driven business,” explained Fowler. “Our appraisers are our eyes into the local markets and the backbone of our business. We want to make sure we stay engaged and understand their vision of the marketplace.”
Home Appraisers Take Their Role And The Industries Trust Seriously
According to the Desktop Underwriter Property Inspection Report, Fannie Mae Form 2075 is only a single sheet of pager with just one-half page of instructions. It allegedly applies only to low risk loans and the form has been around and in use for a long time. The instructions even clearly state it "is not an appraisal report". Fannie's instructions say the report may be used without an estimate of fair market value of the property because the Desktop Underwriter has determined the only valuation necessary can be obtained from the proprietary automated valuation model (AVM). Once this determination has been made, the lender needs only to obtain an exterior-only property inspection. This has some home appraisers concerned with Form 2075; being dedicated to their profession and it's role in obtaining a fair value for housing market improvements, they simply cannot do so with the same accuracy that comes after they gain access to a home's insides.
In House Appraisals Make A Thorough Home Improvements
Whether you are buying or selling a home, a home appraiser who makes a professional valuation after scanning a home's exterior and interior will be much more accurate that a drive by appraisal could ever offer. , Worthy of the home appraiser trust, here are the questions an appraiser can best answer after his/her n house assessment:
Does the property adhere to local zoning regulations? A dive by assessment cannot determine that with the same accuracy from a drive by curbside perspective.
Are there any adverse site conditions (easements, encroachments, special assessments, slide areas, etc.) that a prospective home buyer should be make aware of? One cannot “see” an easement or a special assessment while driving by the home. There are no "tie a yellow ribbon" around it so an appraiser could determine this from their car.
Are there any apparent physical deficiencies or conditions that would affect the soundness or structural integrity of recent Minneapolis housing market improvements? Only an engineer can even come close to answering a question like this and even an engineer would have to again access inside a home to really know.
Are there any apparent adverse environmental conditions like lead paint, improper air flow,basement mold problems, improper sewer drainage, improper soft water tank installations, unnecessary carbon monoxide risks, etc.
There is a considerable difference between a home inspections and a home appraisal.
How A Home Appraiser Determines Value:
For clarity on what components your home appraiser will use to determining your home's value, Home Destination has compiles the following list:
* The Site: Location, view, topography, lot size, utilities, zoning, external factors, highest and best use, home amenities landscaping features
* Design: Quality of construction, exterior and interior finish work, larger fixed appliances and a home's defining features
* Condition: Age, deterioration, renovations, upgrades, added features
* Health & Safety Of The Property: Structural integrity and code compliance of your home.
* Size: Above grade and below grade home improvements that may have changed sine any previous appraisal
* Functional Utility: Is the property functional as built – style and use?
* Parking Structures: Garages, Carports
* Neighborhood / Location: Is the property conforming to the neighborhood? What is the location's market value?
* Parking: Garages, Carports
* Other: Curb appeal, lot size, & conforming to the neighborhood are obvious to the appraiser when they drive down into the neighborhood pull up in front of your home.
Contact Jenna Thuening, owner of Home Destination if you are needing a guide through the process of gaining a home appraisal for the purposes preparing to sell your home.
Download the Federal Reserve Press Release Give Home Appraisers The Right To Use Their Own Judgments
Download the Treasury Announcement of the Wind Down Of Freddie Mae
Home Destination, a Minneapolis Certified Distressed Property Expert and professional Realtor with RE/MAX Results, helps homeowners determine if a short sale or foreclosure is better and to understand their local housing market. We are passionate about helping Twin City homeowners stay in their homes. Call 612-396-7832 and ask Jenna Thuening for help.
Jenna Thuening, a Minneapolis residential Realtor helps sellers get their homes listed to meet higher buyer demand.
Eden Prairie MN 55344
Jenna's home page: homedestination.com
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