Waterfront homes are a popular purchase in Florida where the population grows by around 1,00…
Henri Frank Group at Remax Preferred – Wilton Manors Realtors
Wilton Manors Realtor® Frank Vigliotti and Fort Lauderdale Realtor® Henri Vezie of the Henri Frank Group at Remax Preferred sells properties all through out South Florida. Issues with the market has become concerning to the group REALTORS®. The lack of inventory to the appraisal process, to the short sales and foreclosures there are challenges to getting our buyers the properties they are looking to purchase.
Based on data from a recent survey conveyed by the National Association of Realtors, the reformation of Florida’s real estate market is developing although complications regarding appraisals and firm mortgage credit requirements are still present. A state-certified residential real estate appraiser by the name of Pat Reass, from the Appraisal Group MidFlorida LLC in Winter Haven, Florida shared that the although there are appraisal issues in the housing market, there are many more problems present regarding the use of Appraisal Management Companies (AMCs), a related absence of geographic competency in appraisals, and lenders suggesting that appraisers apply to multiple projects in which the lowest proposals gets the assignment , even it the work is precise.
Pat Reass, from the Appraisal Group Mid-Florida LLC in Winter Haven, Florida identified appraisal challenges and their consequences on the reformation of the housing market market in Florida at a recent Florida Realtors 2013 Real Estate and Economic Forecast Conference in Orlando, Florida. Reass’s speech at the recent real estate conference also overviewed the appraisal geographic competency and uncovered problems with AMCs such as their out of town appraisers that have no knowledge of the property’s region, their inability or non comprehension of the local MLS. She also shares that these non-local appraisers often don’t understand the local zoning concerns or local building codes.
Based on Reass’s presentation, another issue stems from clients who assign conditions to which comparables a property appraiser can use. This can essentially have a negative effect on the competency of the appraiser and them doing their job. In some cases, appraisers are suggested not to use REO (real estate-owned or bank-owned) or short sales properties. This is an unjust appraisal as in some cases, many of the REO or short sale properties are the only sales in the area and thus should play their part in an accurate market. Pat Reass shares a common question that she’s experienced at every job placement she’s held, Can short sales, foreclosure sales, and distressed sales be recognized as comparables? Reass’s answer is yes if the properties are similar in style, features, and is in the same condition of the property she’s appraising.
She shares that the bright side of it all is that there have been plenty of distressed and foreclosed sales in the state of Florida which offers many more non-distressed sales to utilize as comparables in the housing market. Pat Reass also address the issue of the misconception that property appraisers could delay or crush deals and identified lenders as a possible source of the issue. She also noted a case in which the situation seemed like there was an issue with the property appraiser and the bank was the actual source by not reviewing the loan documents and other paperwork in a timely manner. When there is this pause or review stage that takes longer than it should, it has a domino effect on the amount of time between appraisals being delivered, loan approvals, and future loan closings as well.
Another concern that often delays the closing process and keeps the sale pending is a lender requesting a second appraisal to confirm whatever issue after everything has been lined up for the sale. Based on a recent survey released from the National Association of Realtors, 65% of Realtors surveyed said they had no issues with appraisal contracts in the last 120 days, 11% reported contract elimination due appraisals lower than agreed price, 9% experienced delays in contracts, and 15% experienced contracts that were renegotiated to lower sale price due to low appraisals.
The Henri Frank Group at Remax Preferred can be reached at their office at 2166 Wilton Drive in Wilton Manors, Florida or at 2810 E Oakland Park Boulevard, Fort Lauderdale, Florida or in Plantation, Hillsboro Beach Remax Preferred offices. Also, Henri Vezie, Realtor who lives in South Beach in Miami also meets buyers and sellers in Miami-Dade County and assists them in selling and buying Miami Real Estate. Call 954-604-9999 or 954-465-6615 or email email@example.com