Recently I wanted to order an appraisal before making an offer on a property my client was interested in. However, the Appraisal Management Company (AMC) will not accept the appraisal without the contract and full knowledge of contract price and contributions. I don't even want to write the offer until we know where we stand. Even if I was willing to order 2 appraisals, (one before and another after) there is no reason to believe the 2nd one that could be used for the loan would match. With recent changes to the industry, trying to guess what the appraisal will come in at in advance of making an offer is like trying to hit a moving target blind folded!
The Government stole (LIKE THIEVES) the business our appraiser spent almost a decade building. I can't even call her anymore unless we have an FHA loan and I am sure they will screw that up soon enough. She would NEVER add false value for me or anyone else. However, she would at least TRY to do a reasonable job and she would at least take our call with questions or additional info that could have been overlooked if we disagree on value. We may not win, but we at least got a fair hearing because she wanted us to call again. Now, that real estate appraisers don't have to earn the business from relationships with people, they don't appear to care about the product they produce nearly as much. It's easiest to simply take the ultra conservative approach and go low. In this environment, they know they can get away with it.
It is amazing to me that 3 out of 4 low appraisals received, either came in exactly at sales price minus contribution on initial delivery or after I raised holy cow over it, they agreed and raised the appraisal to a number that still equaled sales price minus contribution, to the PENNY! Giving them this information in the first place is what corrupts the process, period! It shouldn't matter WHY the appraisal was ordered. The appraisal should be done without ANY knowledge of contract price or contribution. Afterwords, the lender can apply their guidelines according to the contract and appraisal.
This doesn't take the lazy aspect of the CYAssets attitude from the AMC appraisers out of the mix, but at least it helps purify the process a little. The Appraisal Management Company (AMC) was sold to us as a way to make the process fair. In fact, it does the exact opposite. It rigs the field and cheats everyone involved in the process, except the AMCs and the politicians who rigged the system.
Statistical Home Sales data for Plano, TX can be viewed at the link below. Compare August 09' to August from previous years. We have also included the sales data for each month this year. The average price per foot rose from $90.65 per foot to $91.48 between January and August 09'. Positive movement is welcome news to the sluggish market. The average days on market in Plano also decreased by about 14% to 60 days on market (DOM).
Plano, Texas Residential Home Sales Statistics
data resourced from NTREIS (Greater DFW area MLS system)
The number of Plano, TX homes sold through the Multiple Listing Service (MLS) increased from 135 properties in January to 251 homes sold in the month of August, 2009. While late summer is always busier than January the report does show signs of stabilization.
The City of Plano Parks and Recreation dues increased SUBSTANTIALLY this year. They tell us the city budgets are tight because property tax revenues are down. In order to access the parks and city facilities that help make Plano such a wonderful place to live, they want double the "dues". Technically speaking, it's not really a new tax on the working class, but it is about to be.
This is the first year in many that we will not be "members" to the City of Plano community facilities. Because it was so affordable in the past, we have always renewed our membership, even when we weren't using the facilities very much. At these fees, I may as well toss in a few more bucks and join a nice private club like LifeTime Fitness. We won't do that either, but some will. The point is, by raising the "fee" high enough to catch our attention, we realized we're just not that interested in the privilege. Therefore, the City of Plano just has lost all 4 memberships from our family.
Let's see. We are raising membership dues to our publicly owned community facilities $2x and as a result the number of paying members drops 4x... I am so confused. How does that Obamanomics math work again? Who owns the facilities when all the members quit? That's right, every Plano, working class, tax paying citizen.
Like anyone in business, I am never thrilled to tell a client to hold off a purchase. However, that is exactly what I did a few days ago. The couple may be able to make the move, but only by the skin of their chin, if at all. They don’t have much of anything saved and they would have to roll in closing costs. I assume the move would require calling on friends because I don’t believe they have the money to hire a crew either.
Lately I've been encouraging folks to save first and move second, when they have an option. I think moving is great and recommend that everyone in N. Dallas metro call us when they get ready to buy or sell a home. I just want to encourage people to consider stabilizing their finances first. For me, that means:
America has a Billion dollar weight loss industry because of our unwillingness to delay gratification or endure discomfort. There is only one way to lose weight and everyone in America past 15 years old already knows exactly what it is. Consume less energy than you burn. (or spend less than you earn) Can I have a small piece of that Billion for my 6 word sentence?
The pain of the nation’s financial situation has opened my eyes. We were told that with the stimulus package we’d be able to keep unemployment under 8% but without it, it was possible to see it raise as high as 9%! Well I got news… The point is, if we are unwilling to save anything today, we'll be forced into delayed gratification and being extremely uncomfortable later when life eventually throws us a curve ball, or two. We may be introduced to a new life experience called poverty if we are already over extended when the unexpected happens. Just thinking about poverty makes me want to save. I heard about this one guy in Plano, TX who had to give up the unlimited data package on his iPhone after losing his job and blowing the 401k.. NO THANKS!
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Don't let your American dream become a nightmare. Save first and win!
The National Association of Realtors (NAR) basically sums up the appraisal issues this real estate market is working through. In my opinion, external influences seem to be muddying the waters right now. When we eventually return to (or swing past) a true, fair "pure" market, I expect it to work itself out reasonably quickly. In the meantime, hold on for the ride...
Please spread the word on this issue. We are warning every client we work with that this is a very serious problem for everyone right now.
reblog..
To: All REALTORS®
From: Charles McMillan, 2009 NAR President
Re: Appraisals
Dear Fellow REALTOR®,
During the past two months, we have heard from many of you regarding problems with appraisals that are causing deals to be delayed or canceled altogether. I assure you that we on the NAR Leadership Team are experiencing the same problems in our businesses. In fact, VP & Liaison to Committees Steve Brown recently shared his experiences in Ohio on the Voices of Real Estate blog.
http://narblog1.realtors.org/mvtype/president/2009/06/all_is_not_quiet_on_the_midwes.html
Let me update you on what NAR is doing to resolve these problems quickly.
On Monday, June 29th, I will be in New York to meet with the Deputy Attorney General and his staff who worked directly on the Home Valuation Code of Conduct. I plan to share our concerns, as well as your stories, and ask for their assistance in resolving any problems related to the HVCC.
On Tuesday, June 30th, I will travel to Washington, D.C., to meet with the Director of the Federal Housing Finance Agency to discuss ways we can work with Fannie Mae, Freddie Mac and lenders to ensure that appraisals are accurate.
We will keep you posted on the outcome of these meetings. In the meantime, I encourage you to check out the following resources on Realtor.org for more information on the HVCC and how appraisal problems are impacting the real estate market:
Economists Podcast
http://www.realtor.org/research/research/research_podcast062309?LID=RONav0021
HVCC
http://www.realtor.org/government_affairs/gapublic/gses_hvcc_announced
Appraisal Blog
http://narblog1.realtors.org/mvtype/appraisalinsight/
On behalf of the entire Leadership Team and staff, I thank all of you who have shared your experiences and concerns with us. With your continued participation, I believe we will overcome this challenge in much the same way as we have conquered others – "United Toward Tomorrow."
Sincerely,
Charles McMillan
CIPS, GRI
2009 NAR President
We help families buy and sell homes in the N. Dallas & Collin County areas of TX. We also have a local team of pre-foreclosure specialists who negotiate bank approved short sales & loan modification.
It Isn’t Hobbies That Bring Brad & Traci Together -
It’s Their Approach to Life.
Brad & Traci Brusenhan know the beautiful parks in Plano don’t have anything to do with the fine dining in Dallas. They realize that local youth sports are integral to the community, but there is no connection between them and the cultural diversity of the people or the access to world-class shopping and amenities. Brad & Traci can tell you that when you bring all these significant elements together, it equals a great place to live.
A Deeper Commitment
Like the area they love, Brad & Traci also reflect a myriad of independent tastes, interests and pursuits. Brad enjoys spending time at the gym and Traci prefers curling up with a good book. A Saturday barbeque at home is a vacation to Brad, while Traci loves to travel to distant destinations. As you can see, their hobbies and passions are different. The foundation of their relationship - mutual respect and their common philosophies, values and ethics - are what forms the solid, lasting bond they share. These core essentials guide them in the way they raise their sons, as well as how they approach their serious commitment to each other and their careers in real estate.
Brad has always been driven by his dedication to hard work. After completing his education he became fascinated with home renovation, and when his ambition took hold he accepted a position with a home remodeling contractor. It wasn’t long before he learned the intricacies of construction and set his sights on the next phase of his career. His “can do” attitude, entrepreneurial spirit and interest in building and remodeling led to a career in home inspection, where he and Traci paired their skills, worked hard and established a thriving business.
Joining Forces
When Brad first met Traci, he was struck by the depth of her personality and how quickly she made people feel cared for and comfortable. Brad found it no surprise to learn she had been working with severely handicapped individuals for several years, and she loved their spirit and sincerity. She discovered how rewarding it was to help them in their daily lives, and their genuine appreciation was heartwarming to her. However, after Brad & Traci married, Traci made the decision to team up with her husband in both life and business, joining forces as devoted spouses, loving parents and committed professionals.
In the spirit of working together, Brad &Traci decided to continue their partnership in the real estate industry, serving the needs of home buyers and sellers throughout North Dallas and Collin County . Working together has enabled them to combine their expertise in the construction, investing and mortgage lending businesses to provide their clients with clear guidance and valuable knowledge regarding all facets of the real estate industry. As a lender, Brad will help locate the best mortgage available by shopping a large network of lending institutions. Pairing Brad’s top-notch marketing and negotiating skills with Traci’s sharp instincts and natural ability to make people feel at ease ensures the process will be an efficient and pleasant experience.
Working Together for Your Success
Through the years, Brad & Traci have garnered a network of associates who can assist you with all aspects of your move. From lenders and contractors, to their own transaction coordinator, you can trust that every detail of your sale or purchase – whether in new construction or resale property – will be handled with complete professionalism and the utmost care.
When you’ve made the decision to buy, sell or invest in the North Dallas or Collin County area, give Brad & Traci Brusenhan a call. From the moment you meet them you can tell they will be Working Together for Your Success. Contact them today at 972-312-1052. You’ll be glad you did.
Brusenhan & Associates Realty is not a standard real estate brokerage. Through The FHA Pre-Foreclosure Short Sale Group, we offer homeowners across the United States a complete solution to FHA mortgage delinquency issues. For a small fee, which barely covers our own expenses, we help homeowners negotiate to stay in their home. If they do not have the small fee, we often find a way to help them anyway. For those homeowners (Distressed FHA Mortgage Loans Only) who wish to sell the home and move on, we offer a complete program to help them achieve their goals, regardless of equity, at no direct charge to the homeowner.
Through a long standing relationship and valued partnership with our friends at America's Home Rescue, we offer comprehensive Short Sale coaching services to real estate professionals across the nation. I understand that short sale training has become the new "thing", but I can assure you that there is a difference. America's Home Rescue has been training agents for years. Before talk of bailouts and a national foreclosure crisis, they were intently focused on short sale training. They have helped to elevate my business and experience to levels beyond anything that I had ever imagined. Training national audiences of Realtors at the National Association of Realtors (NAR) convention and holding meetings with high level officials at HUD and other state level real estate commissions has been an honor for Michael & Stacey Spickes. Being asked to join their elite team of coaches to help provide short sale training for our colleagues in the industry was a tremendous honor for us as well. If you would like additional information on how we can help you learn more about short sales, please email us directly at Options@FactsOnForeclosure.com or call us direclty at 972-312-1052.
My dream is that the short sale services and training division of our brokerage would be put out of business. While I have little faith in our government to achieve this, I have tremendous faith in our country and the entrepreneurs that make it great. I would love nothing more than to close our final short sale file because there is no longer a need for our services. In the mean time, we will continue to focus on helping homeowners and agents through the process.
Last, but certainly not least, Brusenhan & Associates Realty - Dallas, Texas is also a residential real estate brokerage providing traditional services for DFW area residents. Traci and I have helped thousands of DFW area families with a variety of real estate and mortgage related needs since 1996. Helping families buy and sale homes is the core of our business and always will be. Combining substantial "past life" experience as a home inspector with our current real estate, lending and pre-foreclosure services, we offer a wide range of knowledge and experience that can be difficult to find.
posted by: Brad Brusenhan
We'd like to allow our past clients and friends speak for themselves. To access our network, feel free to engage our friends on Facebook at http://www.Facebook.com/DallasTexasHomes or follow us on Twitter at http://Twitter.com/Dallas_Realty or http://Twitter.com/ShortSaleGuy.
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