Tax Credit Coming Back? - 08.30.10
Today's Poll: Should they bring back the tax credit?
Yes
No
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5pence: (August 30, 2010 7:14pm)
joe, I'd rather err on the side of right & an MLS listing (marketed for a reasonable period) is just that. If it hasn't been marketed for a reasonable period then how do you know it's sales price is then it's market value? You don't. See? Rationale being builders will get straw buyers to buy at a high price off-market to try to set the values for all other homes they're building. An off-market sale does not stand the test of being an arms-length transaction where the market decides the value rather than the seller & the buyer alone. A model match can & should be included in your report & all the terms of the sale verified-as a reference only. I've seen off-market sales that should never have sold at the high prices they did. You'd expect off-market sales to be lower in value than your subject since there are no realtor fees involved-but that's not always the case. Incompetent AMC's are forcing their "appraisers" to match their AVM's-hence use of REPO's, foreclosures & non-market sales.
joe: (August 30, 2010 6:01pm)
I am scratching my head about this "only comps on the MLS can be used" issue. That information is only as good as the agent inputting it--and we all know how reliable that is! It's not that I distrust agents all that much, but from my observation, many appraisers simply accept what is in the MLS, without contacting the agent for confirmation. Especially these days, with AMCs raking half the appraiser's accustomed fee off the top. Apart from the astonishingly ignorant statement that "a sale not on the MLS is not arms-length," I am wondering what other rationale there could be for disregarding a model match to the subject, recently sold, in favor of inferior, older comps a mile or more away. And what kind of pressure, if any, do appraisers now get to produce reports with very low values?
5pence: (August 30, 2010 4:13pm)
That's exactly what I mean when I say the TBTF banks that are essentially bankrupt and should not exist have employed "robust" and "rigorous" AMC's that should not exist and they in turn hire appraisers that should not have a job. I think "robust" and "rigorous" refers more to the AMC appraisal skillset as in "the (AMC) body is in a robust state of advanced rigor." Things just haven't been the same since they outlawed miniature car monkey racing.
joecolorado: (August 30, 2010 3:53pm)
I also had a report rejected by an u/writer as my GLA didnt match the Assessors' GLA! I explained that I had been at the house that very week on that very appraisal day and had measured it all by myself.The Assessor had not seen or been inside the house or re-measured it since it was built in 1955.They STILL took the Asses GLA and downrated me and reduced the value of the house which killed the deal.I was of course the bad guy as the appraisal had been incorrect.
joecolorado: (August 30, 2010 3:46pm)
I was required to photoshop out the faces in the photographs of the family pix on the credenza and hanging on the living room wall in the photograph(Living Room)submitted in the report as it may have shown the age of the person,the ethnicity etc.The State authorities confirmed this needed to be done.This family had a large flat screen TV which had a VW Tuareg in the advert caught in the same photograph.I blacked out the TV screen as the guy driving the VW could be seen. Anyone out there know how far we go on being PC?IS there a limit to how much we have to block out on a submitted photograph as it may show un PC thingies?
W.R.Buchanan: (August 30, 2010 3:40pm)
JoeC: You should read my boilerplate about the accuracy of MLS listings, you'd love how I explain to the AMC's that I don't give a shit about what MLS says when I have personally inspected the property and found MLS to be full of Cagada! My measurements superceed all MLS statements to the contrary and I won't even argue about it! Problem is getting morons at the AMC's to read the G/D addendum. Randy
5pence: (August 30, 2010 3:37pm)
My apologies to the appraisers out there and SoldinOregon - I misquoted reproduction cost and replacment cost. I had it backwards. Reproduction cost is reproducing the home nail for nail, stud for stud and quality amenity for quality amenity. Replacement cost is using todays materials to reproduce the utility of the home being appraised. Can you imagine the costs to reproduce a home built before there were power tools and every almost every item was hand made and custom to that home? Astronomical! and, it's replacement cost would not be reflected in todays market since no one builds homes like those anymore, or could afford to. Hence, replacement cost.
W.R.Buchanan: (August 30, 2010 3:36pm)
JCollins: Once again someone who obviously knows nothing about appraising is making a idiotic commment they can't back up, and have no idea of what they speak. You must think we take a few pics, and pull the final value from our asses. But on a more positive note:, Here's a hot tip for you on the accuracy of an appraisal. The accuracy of an appraisal is implied by the degree of roundness of the final value number. I'm not going to explain this for you, it's covered in Appraisal School that you didn't attend. And yes, I am that good! You should try competance. It works for me. Like I said in my earlier post, Attention to details, and personal responsibility, are the keys to success. Randy
joecolorado: (August 30, 2010 3:34pm)
the MLS data can be checked as the Realtor entering the data propbably has a copy of the original documents sitting on his/her desk,after phoning the realtor and checking the financial info the data can be analysed,THATS why the convenient sales in the MLS are used.The FSBO financial info cannot be verified unless you actually see the document.FSBO dont generally have to report personal property which was sold with the house(a car or an ATV for example)or declare to anyone outside the contract the details of the seller concessions which need to be considered in an appraisal. If we as appraisers can be pilloried for incorrect information by just about everyone,you can bet your bottom dollar that the information I have in my report has come from a reliable source(The listing Realtor) and has been checked and documented in my file.FSBO's can tell you anything with no repercussions.Would YOU trust info that cannot be verified or ratified by a 3rd party?
5pence: (August 30, 2010 1:42pm)
Gee, what do you think JPMorgan meant by this? They want more money? Bloomberg 8/30 : Only Congress Can Spark `Nuclear' Mortgage Refinancing Wave, JPMorgan Says. Congressional action would be required to trigger any significant “government-sponsored refi wave” in the market for bonds owned or guaranteed by mortgage financiers Fannie Mae and Freddie Mac, JPMorgan analysts led by Matthew Jozoff wrote in an Aug. 27 note to clients. “We continue to believe that such a large-scale event is highly unlikely,” Jozoff wrote. “Fannie and Freddie could not unilaterally cut mortgage rates on existing private mortgages around the country, nor could the Treasury.”
teresatims: (August 30, 2010 12:18pm)
Are half of you retarded? (poll results) We don't need no stinking tax credit, we don't need no "fake programs" that are supposed to help people stay in there houses forever that they can't afford, we can't keep PAYING FOR EVERYTHING... THIS DESTRUCTIVE BEHAVIOR IS PROLONGING OUR MISERY AND RECOVERY... DAP IS WHERE IT'S AT BABY! Terri T. over and out
Daggone: (August 30, 2010 12:13pm)
caappraiser - I just had my first experience with my lender refusing to look at any sales except those thru the MLS. I really don't get it. An appraiser who knows what he is doing can easily determine if a FSBO is comparable.
5pence: (August 30, 2010 11:57am)
49% "no" for bringing back the tax credit and 51% for. Interesting. Have a great day all!! I'm going to be busy virtual touring Singapore lol.
5pence: (August 30, 2010 11:22am)
SoldinOregon: That value lowering was not done by the appraiser but by the AMC showing their "robust" and "rigorous" incompetence. The appraiser was probably inexperienced also. Replacement cost is one just approach (cost approach) that doesn't work on older dwellings - where they used real 2x4's and craftsman homes, like homes built before there were power tools. It does have it's place however. Reproduction cost reflects modern day materials and workmanship and is most commonly used. The HVCC and AMC's are at fault in that case, in their choice of the appraiser and the underwriter. It sickens me to continue to hear these stories of how consumers are being ripped off daily, hourly, and minute by minute. The seller should get a reliable and experienced appraiser to value it and sue. IMHO
5pence: (August 30, 2010 11:11am)
GOOD: A Bend, Oregon policeman had a perfect spot to watch for speeders, but wasn't getting any. He discovered the problem: a 12-yr-old boy stood up the road with a hand painted sign that read "RADAR TRAP AHEAD". He also found an accomplice who was down the road with a sign reading "TIPS" & a bucket of money. (And we used to just sell lemonade!) BETTER: A motorist was mailed a picture of his car speeding through an automated radar post in Pendleton. A $40 speeding ticket was included. Being cute, he sent the police dept. a picture of $40. The police responded with another mailed photo of handcuffs. BEST: A young woman was pulled over for speeding. An Oregon State Trooper walked to her car, flipping open his ticket book. She said, "I bet you're going to sell me a ticket to the State Trooper's Ball." He replied, "Oregon State Troopers don't have balls." There was a moment of silence. He then looked into the distance, closed his book, tipped his hat, got back in his patrol car & left.
charlottehousehunter: (August 30, 2010 11:09am)
On the tax credit extension: double h-e-double hockey sticks NO. We sunk sales in July 27%. Maybe we can drop sales 50% - which is what will happen when this next ends. I'm in 100% agreement: we need to bring back down payment assistance. The government already does it with FHA-HUD homes, VA, USDA, and the Housing Finance Agencies so why not you and me.
SoldinOregon: (August 30, 2010 11:05am)
I'd like to see appraisers use the "replacement" method because a lot of what's selling selling in my area would be impossible to replace for what properties are selling for right now. At least use it as a "red flag" back up if appraisals are coming in too low or being adjusted downward. I recently had a listing where the buyers underwriter lowered the value of the condo by $30,000 because of a lack of comparable sales and it not only killed the deal but ended up causing my sellers into a "short sale" situation and I know you could not have come close to replacing the condo for what it ended up selling for later.
5pence: (August 30, 2010 10:34am)
yeah GoodGuy - appraising is a practice, like a doctors practice or a lawyers practice, we appraisers that care about the public trust (that appraising entails) always seek to perfect our skills. We're not perfect - no one is. But that should not be an excuse to ignore the practice of perfection to pervert the markets through fast and easy money corruption. Thanks to the Fed the adverse spirit of speculative greed has taken hold of this country to the point where cost effective over rules sane and sensible. Where are we when banksters can take out insurance on something they sold (CDO's CDS's) to someone else for their failure? It's like being able to take out insurance on your next door neighbor's health or home. Where's the incentive? To see your neighbor healthy and their home secure? To quote my favorite, Bob Dyan - There's no use jivin, there's no use jokin, everything is broken.
cpappraisal: (August 30, 2010 10:23am)
joe-The lenders will not let us use a comp. unless it was listed on the MLS. That is lender specific rules. If they find that we used a comp not listed on the MLS they will ask us to throw it out so we don't use comps not listed on the MLS for that reason. Using comps miles away from the subject. If it is a tract home that shouldn't be done and any appraiser doing that should be reported.
GoodGuy: (August 30, 2010 10:14am)
It looks like the bankes have succeeded in building a very decisive wall of distrust between Realtors and Appraisors. That is too bad, we should be working together to make deals work, not for us but for the public. Most Realtors donot want their buyers being stuck with an overvalued property. At the same time most Realtors want to be able to atleast discuss it in a reasonable way to detrermine if a mistake was made. It can happen.
joe: (August 30, 2010 10:05am)
From where I sit, the tax credit had very little influence on people's decision to buy. At best, it may have given them an "impending event" incentive in the form of the deadline. This *might* have caused them to buyer sooner. With respect to the appraisal mess, I think the most damaging aspect of HVCC is that appraisers no longer have a reason to create good relationships with their clients. We have seen some spectacularly incompetent appraisals recently. Did you know, for example, that a property not listed on the MLS is not "arms length," and therefore doesn't have to be included as a comp? Seriously. We have seen comparables that are totally unsuitable--miles away from the subject, perhaps with large net and gross adjustments. THIS is what underwriters should be checking, but they don't.
cpappraisal: (August 30, 2010 10:01am)
I don't spit in the streets so I think I will do OK as an appraiser there....LOL
5pence: (August 30, 2010 9:57am)
mdeery - no kidding. The FED creates money out of thin air, loans it to banks at 0.25%, who buy treasury bonds at 2.6% and pocket the difference. This is called "stimulus"! What it really is, is a transfer of wealth from the taxpayers to banks.
5pence: (August 30, 2010 9:53am)
Interesting - maybe they could use some American ingenuity and experience out there as teachers or partners. Some of these Singapore appraisal businesses have english surnames. Kelton & Wheeler International Pte Ltd#16-127, Bishan, 570224, Singapore p: 63822166 f: 63820208 Website - None Supplied Email - None Supplied. Kenwood Real Estate Pte Ltd 63374516 Beach Road, Singapore Property Appraisers - Appraisers - Real Estate Consultants. Newman & Goh Property Consultants Pte Ltd 62562793,62566287,62565011 Thomson, Singapore. Keats & Partners 62250683 Yio Chu Kang, Singapore Property Appraisers - Real Estate Consultants. Knight Frank Pte Ltd 62221333 Robinson, Singapore Property Appraisers - Art Auctioneers - Auctioneers - Real Estate Consultants. Property Appraisers - Real Estate Consultants. Shaw Properties (1997) Pte Ltd 62352077 Orchard Road, Singapore Property Appraisers.
mdeery: (August 30, 2010 9:49am)
Bring back the tax credit? it was a complete failure. Let the markets heal on their own, and put away the unlimited checkbook dear Prez and Admin.
cpappraisal: (August 30, 2010 9:42am)
5pence-Hey mabye that is what we need out here...lol. They are doing something right....as far as their economy goes at least. People are moving there for employment from othere countries....
5pence: (August 30, 2010 9:34am)
cpappraisal: Singapore? Ohh ohhh, you've got me thinking now. I know they punish financial crimes unlike here. I think if you spit in the street you get hit with planks. lol. Very clean country and tough on crime. I wonder if an american appraiser could make it there? Interesting.
cpappraisal: (August 30, 2010 9:27am)
Hey....I heard the real estate market and economy in Sigapore is booming. Maybe we should relocate out there....LOL. I wonder what it is that they are doing right.
5pence: (August 30, 2010 9:21am)
jcollins : I gave you the facts of what the wealthiest are contributing and why a higher tax rate for them is being seriously considered. Do you need links to my claims? I can provide them. As far as being a few % points off in the appraised value, the BANKS need to make that decision to loan or not based on what they know. It's not up to the appraiser to tell the banks when to lend. As stated in my previous example, if it's just a few grand and within the adjusted values of the comparables then why can't the banks make the judgement call on the sales price if the appraisal does not match it exactly? Why not? Because the banks do not want to do any risk assessment or quality underwriting. They want to lay the blame on anyone and everyone they can. They are still not doing their jobs of evaluating risk - thanks bubble ben and company.
5pence: (August 30, 2010 9:15am)
Maybe so no deals will fall through ever again for TXRealtor, appraisers should be hired first to value the property - instead of the realtor. That way there can be no problems with closings or DPA. Just an off the top of my head thought. Could work - there'd be a lot of happier realtors and appraisers and banks and buyers and sellers.
jcollins: (August 30, 2010 9:11am)
W.R.Buchanan: Once again an appraiser that believes their OPINION is so accurate that they can not be off by a few %. It must be nice knowing you are so good.
jcollins: (August 30, 2010 9:08am)
5pence: I was asking the question because of your comment of the consumer spending numbers. I had thought that you were watching it closely. Thank you though.
5pence: (August 30, 2010 9:04am)
jcollins - I've heard not much because they save their money. I guess with all the businesses dying out there they've found investments worth their time and money. One of the main reasons put forth for taxing the top 5% in wealth is because they won't spend. That will get passed imo
W.R.Buchanan: (August 30, 2010 9:03am)
TX Realtor: I take complete exception to your earlier comment about how appraisers are the ones killing your deals, and How we answer to no one. You obviously know nothing about appraising, our licensing, cont ed requirements, USPAP, Fees, E&O ins, and the complete land of bullshit we have to operate in, just to make $2-300 on a job. If your deal falls thru it's your fault for not representing the property truthfully, not handling your clients, or trying to pull the wool over the banks eyes. I don't care if it goes thru, All we do is tell the bank what we think it's worth based on the facts we have access to. You're interpretation of those facts means nothing, You don't get to pick comps because you're an idiot! We don't have to lie to get paid anymore, apparently you do!If your deal falls thru you can just go look at the yoyo in the mirror to see who's at fault. No need to look farther. Personal responsibility and attention to details, is the key to success in any field. Google it!
5pence: (August 30, 2010 9:01am)
Big Time Ops: That was totally uncalled for. JDaniel sounds sounds like an honest and ethical aprpaiser. Just what are you looking for? Cheapest, fastest and the most inexperienced so you can push them around because you know you can't push around any appraiser with experience? What I see when I think of AMC's is banks that should not exist are hiring appraisers that should not have a job. Congratulations, you found a niche that should not exist, and hopefully won't for long. @ezraadams - thanks, or... you're welcome. I look forward to your posts too.
jcollins: (August 30, 2010 8:56am)
RE: Consumer spending... What is the normal percentage that the wealthy contribute?
Robs Homes Online: (August 30, 2010 8:53am)
Another tax credit a good idea? Come on guys, we're selling our future generations down the tubes because the market is a little (or a lot) down right now. I'd rather see us lobby for looseing of Stated Income/Verified Asset loans so that those who are not W2'd can buy a house, or see the banks start to foreclose on those staying in their homes 460+ days without making a payment. I'm not really sure that's helping the big picture, or setting any kind of an example in anyone's market. Banks have loads of inventory that are holding onto that have a big impact on whether they can lend or not. I say NO to another tax credit and we all get to work, or get out of the biz!
5pence: (August 30, 2010 8:51am)
@associatebroker: damn right it's a pre-election ploy. It's not enough that all the so-called stimulus plans have failed miserably & will not return to the taxpayer 5 cents on the dollar, but they feel the need to dig deeper into the taxpayers pockets once again to get votes. The greedy spirit of speculation is going to turn the population of the world into whores. As an FYI - The NAR is a Guild. Further, Obama met with the SEIU, the Guild of services employees international. Obama respects Guilds. Appraisers need to join a Guild or start one in your state. "President Obama's decision to appoint his close political ally, union leader Andrew Stern, to the newly created National Commission on Fiscal Responsibility and Reform has set off a firestorm of criticism from business & conservative groups who charge he is a political radical who should be investigated for failure to register as a lobbyist." Guilds have power not tied to Unions in the typical sense. NAR for instance. JMHO.
SurfDaddeo: (August 30, 2010 8:47am)
Wanna get the market going, help preserve values and put 1,000's to work? Banks are hoarding foreclosures and causing the market to continue to spiral downward... I go to our local courthouse foreclosure auctions and 95 out of 100 properties going to auction are "bought Back" by the lender at bid prices double what they are worth... 1-Give these banks an incentive to let the properties go at auction to the small investor 2-The investors will put 1,000's to work reselling the properties in repaired condition (think of the dozens of people involved start to finish in a sales transaction like this) 3-The properties will sell at higher prices, fixed up and much quicker than the banks will turn them over, thus helping to preserve market values. 4-Loosen up the lending guidelines on re-selling foreclosures... heck for that matter give incentives to do so... Get with it Washington... This is the time we NEED the small investors in the market...
Evil Genius: (August 30, 2010 8:41am)
Strategic non-foreclosure. How novel! My wife's ex-husband and his new family bought a home with zero down using a straw buyer for $280K in 2003 in Corona, CA. Once he had raped the equity out of the inflated value for a final note of $572K (almost $300K cash out over 5 years) he stopped making payments in February 2008. The foreclosure sale date was set for August of 2008. They are still in the house which is still NOD. The home is in his wife's name because of course he owes $100K+ for child support to my wife. And we as a people remain complacent with the lack of consistency and the lack of ability of the people that are supposed to run these systems. There are alot of deadbeat dads and moms that hide assets behind the skirts of the new spouse. The child support system needs to be able to pierce the shield of assets. And lenders either need to cut new deals with their squatters (if they can pay anything) or get someone in to the home at the recasted value.
BigTimeOps: (August 30, 2010 8:38am)
JDaniel - If you were one of the appraisers in my AMC I'd fire you and your nasty attitude. What you fail to realize or seemingly even grasp is that those business relations feed YOU! While lenders may be closing up shop because of your refusal to care, they are going to take you down with them. May your ship be the first to sink.
Ezradams: (August 30, 2010 8:38am)
5Pence, As usual you're right on the money with your comments. I don't even need to respond when you're around...thanks!
5pence: (August 30, 2010 8:35am)
They're saying consumer spending is up but what they're not saying is that the reason consumer spending is up is because the top 5% in wealth in the nation accounted for 40% of that increase.
JDaniel: (August 30, 2010 8:15am)
TXrealtor: Is it 4/1 already. You got to be kidding. It is YOUR attitude that caused HVCC and hurt us all, especially me, a highly experienced, competent and honest appraiser. For the record, I have "cratered" very few deals and a small % in my career, only those that were sold above market. Not that its any of your business.
associatebroker: (August 30, 2010 8:10am)
Bring back the tax credit? Who are "they" kidding? This is nothing but a pre-election scam to entice a portion of the voting public that should not own homes in the first place, as well as to throw a bone to the NAR union members. Yep. In case you haven't figured it out, the NAR is effectively a union. This, and other government schemes, will continue to falsely prop-up market values and ultimately lead to a very bloody collapse. Wake up America! We're on a ticking time bomb.
DR: (August 30, 2010 8:09am)
Thank you so much for not depressing me (and others) today. By the way having a few young ladies appear once in a while is not a bad thing. Best, David
Bono Vox: (August 30, 2010 7:57am)
I meant "false choice", not "false argument"
Bono Vox: (August 30, 2010 7:56am)
Frank and Kim - I think you're setting up a false argument on the tax credit. The tax credit isn't a very good idea because it's expensive and creates a bubble that busts. The seller DAPs are a bad idea because the delinquency rate on them is so high. Why not just take our medicine, let the market normalize, and move on? Once the effects of finreg, healthcare reform, and tax increases are clear, small business will start hiring again.
5pence: (August 30, 2010 7:56am)
One thing I never understood. The banks hire the appraiser so they can see market value and measure their own risk in making the loan. Yet the banks demanded that if the sales price was $189k that the appraisal show $189k. That is just wrong. What should be happening is if the appraisal comes in at $185k and the indicted value range is $175k to $198k, the the bank should measure their own risk in the deal and if they feel that the borrowers are good for the sales price of $189k then they can make that decision instead of relying on the appraiser to make that decision for them in the valuation. BTW, I saw a reporter on TV this weekend saying that the Banks were taken advantage of by the public and brokers, insinuating that the banks are total innocents in the meltdown - WTF??!! That is the mentaility of what we're up against.
Bono Vox: (August 30, 2010 7:53am)
TXRealtor: C'mon....we need honest appraisers doing honest numbers. It cuts back on fraud and on unethical Realtors and lenders tricking someone into overpaying. That said, I've seen a lot of evidence lately that appraisers aren't doing their due diligence. As a lender, I've had to start pulling comps and doing matched pairs to show appraisers where they went to fast and missed value.
5pence: (August 30, 2010 7:50am)
TXrealtor: The market has to find a bottom first before prices can go up. No amount of phony support can stop a slide & buyers know this (or should). It seems you have a problem with appraisers. All appraisers do is measure the market, they don't make market value. You want to blame someone, go blame the realtor that lists the property too high & tries to sell it to an out of state buyer that doesn't know value. Blame the AMC for hiring the cheapest/fastest appraiser they can find. Blame those that are trying to buy but can only afford it if value is inflated by 10% so it covers their down payment. Blame the government for making home-ownership cheaper than renting forcing the issue of rent or own & then shoving tax credits down their throats to try to get them to buy at a time when it might not be in their best interest. Blame the bank that will not accept a value range & decide for themselves their own risk in the deal, ie. Sales P=$189k Appraised at $185k. Don't blame the appraiser.
rbfernandez: (August 30, 2010 7:35am)
As long as the current US job market is hovering at the official rate 9.6% of the Labor Force (Doesn't include Discouraged, Marginally Attached or Part Time workers looking for Full Time Work) don’t expect a tax credit to turn this market around. IMHO the only thing that will turn this market around is when people start feeling secure in their jobs and that will only happen when we start bringing manufacturing and servicing jobs back to the USA.
jcollins: (August 30, 2010 7:31am)
jdaniel:: Do you think your appraisal is spot on accurate?
5pence: (August 30, 2010 7:25am)
Frank or Brian, where is the downloadable report in the links and docs section for the Lender Processing services report? I didn't see it in the MC banner and can't see it noted anywhere.
TXrealtor: (August 30, 2010 7:19am)
Ezradams says, "TXrealtor, How many times do we have to go through this.....one set of buyers and sellers does not a market make" How profound, you think of that all by yourself? Go tell that to all the homeowners trying to sell their homes and all the folks who want to buy but can't, and all the Realtors who must make a living to eat, and all the inspectors who must making a living to eat, and all the title companies who must make a living to eat - get the picture? Don't be so smug, you don't have the answers either and your arrogance isn't helping. No one really wants programs like the Tax Credit back, but people do want buyers to come out of the woodwork and homes to start selling. What do you propose?
donblakeley: (August 30, 2010 7:19am)
Yes, the division is amazing. By the way, loose is untied, as in shoelaces.....lose is used when you lose a job or a puppy, kitten....... not loose.
TXrealtor: (August 30, 2010 7:11am)
JDaniel says "Obviously, they will make fewer loans and make less money. Ideally, these companies will lose market share and go out of business as word spreads throughout the lendingsphere." Man! What an arrogant, short sighted comment! Of course you're leary, that's why you're an appraiser! Hey lenders & Realtors, this is the (kind of) guy / thinking that's cratering deals in today's struggling market. Too many people are involved in a Real Estate transaction, NO ONE person should have ALL the power & not have to anwser to anyone. JDaniel, while you're killing deals, and causing lenders to make no money & companies to go out of business, and sellers can't sell their homes & buyer's cant' have the home they want & Realtors make zip, are you sleeping okay at night? Sounds like you're hindering, not helping. Go have yourself another cup of arrogant tea.
SurfDaddeo: (August 30, 2010 7:10am)
If they bring back the tax credit, bring it back for everyone. One of the major negative issues was that it targeted a lower price range buyer which caused sellers of properties just above the qualifying limits of the targeted buyers to have to reduce the price of their homes in order to sell, which in many cases created EVEN MORE SHORT SALES and LOWERED HOME VALUES...
Ezradams: (August 30, 2010 7:06am)
TXrealtor, How many times do we have to go through this.....one set of buyers and sellers does not a market make.
frankgaray: (August 30, 2010 7:05am)
As of 7:04am PST 1209 people have answered the poll question. Interesting.
TXrealtor: (August 30, 2010 6:28am)
On one hand I say bring back the Tax Credit, not that it's the right thing to do in the big scheme of things. As a Realtor, we are starving / dying! Where are the buyers? SteveHillyer, you may be on to something - bring back the DPA programs. Bring back something! As for the effed-up appraiser/appraisals, it's ridiculous that we have a willing seller, a willing buyer, then ONE person comes along & with a stroke of his pen, craters the entire deal, lose, lose for everyone! How is this helping the housing problem(s)? Maybe rates should be raised, set a date when they're going up, then let's see the buyer's jump off the fence. People react when it hits them in the pocketbook and they must perform by a deadline (part of the success of the Tax Credit Program(s)). Just sayin...
Daggone: (August 30, 2010 5:31am)
Unless only two people have taken this poll today, amazing nearly 50% of us in the business think throwing more money at the first time buyer with a tax credit, again, is a huge waste of taxpayer dollars. Writing to my senator and congressman NOW to tell them NOT to do something this foolish. Stop the HVCC nonsense of undervaluing properties and allow more people who are working to refinance would be a big benefit to the economy. Fix the easy things first Washington!I am sick to death of lazy, inept appraisers turning in apprasials that would have risen eyebrows a few years ago, but now u/w eat em up if the value is low enough.
SteveHillyer: (August 30, 2010 5:18am)
Why are they wasting time with Tax Credits when all they have to do is bring back DPA! It was never a matter of down-payment, it was a matter of jobs! Put no money down, have a job, you can pay your mortgage.50% down, loose your job, loose your house. There are no talking heads in Washington or TV that understand the mortgage industry.
JDaniel: (August 30, 2010 5:18am)
As an appraiser I am leary of this new policy. After decades of having lenders tell me to raise the value,or else. I am now going to have them tell me to lower the value,or else. This is a ridiculous policy. Advance warning to lenders: NOBODY TELLS ME WHAT THE VALUE IS GOING TO BE ON ONE OF MY APPRAISALS. Any appraiser will tell you that underwriters are inept when it comes to analyzing an appraisal and any honest underwriter will tell you that they have had little training in same. As an appraiser, I don't really care if they want to knock off 10-20% of value. My appraisal remains unchanged. It's there money, they can lend it in whatever manner they see fit. Obviously, they will make fewer loans loans and make less money. Ideally, these companies will lose market share and go out of business as word spreads throughout the lendingsphere.