Neil Cavuto of FOX Business Network interviews Connie DeGroot of Coldwell Banker and Jonathan Miller of Miller Samuel on the ever changing role appraisals are playing in the home buying process. Take a listen:
Underwriter stipulations for declining markets, of which Florida is one, usually require 3 sales within the previous 90 days within a maximum of one mile radius. In the current environment, the pool of comparables rarely have more than one sale which fits this criteria.
Therefore, either the radius need to be expanded or the time frame must be exceeded. I have submitted reports in which it was necessary to exceed standard guidelines for comparable ranges with respect to time and distance, with extensive commentary explaining why this was necessary. Underwriters have kicked back many of these, asking for those sales within 90 days. They do not exist. Certainly, if there had been comparable sales which fit this criteria, they would have been utilized in the first place.
So, we can see how we hit a fork in the road. It comes down to banks and their willingness to lend. I believe sometimes the appraisal is the labeled the culprit on deals that go south, which is unfortunate.
And, just when you thought it was safe to go in the water, or your local strip club, comes this CNBC story which throws a jab at us appraisers.
I have not even been to a club in over year, including the DR, due to financial constraints, of course.
IN THE INTEREST OF FULL DISCLOSURE I AM AN AGENT WITH COLDWELL BANKER
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