as of may 1st 2009 the following goes into effect
Beginning May 1, Fannie and Freddie are refusing to fund loans with appraisals that do not follow a set of new rules known as the Home Valuation Code of Conduct. Among the procedural changes: Mortgage brokers no longer can order appraisals directly, but instead must allow lenders or investors to use third-party "appraisal management companies" to assign the job to appraisers in their networks.
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Starting April 15, all good faith estimates provided to applicants must indicate a flat $455 charge for appraisals arranged through the appraisal management company. The broker previously charged $325. Consumers will now have to pay the appraisal fee upfront -- before any inspection or valuation is completed -- using a credit card, debit card or electronic fund transfer.
What happens if the appraisal comes in low and the applicants can't qualify for the refi or purchase program they sought? Tough luck: They'll have just two choices: Pay another $455 for a second appraisal -- with no assurance that it will solve the problem -- or cancel the application.
Let Us Review The Marketing Plan Determine Needs & design program accordingly Advertise in magazine Prepare & present Market Analysis Send out copies of advertising to seller Get listing Discuss having an open house Call listing into central office Advertise open house in local paper Fill out Multiple Listing Form Hold open house Turn MLS form into office Review open house results w/seller Send listing to all affiliate officers Discuss property w/fellow agents Fill out advertising form Mail out additional inside brochures Turn in advertising form Check on recommended changes Send out "Just Listed" cards to neighbors Review market analysis Photograph Listing Make any recommended changes Homeowner's warranty Advertise Place brochure box on sign Discuss property with fellow agents Put up sign Contract and negotiate Tax keys Send out sold postcards to neighbors Put up lockbox Sold tag on sign Contact mortgage company for information Turn in sale to MLS Verify legal description Turn in earnest money Schedule office tour Turn in info sheet to Title Company Tour home Check on credit report - follow loan Report tour evaluation to seller Check on appraisal Put together front page of brochures with picture Check on termite inspection results Send out completed brochures to seller Check on radon results Preparation of home book Check on home inspection results Deliver completed home book Get deed packet from Title Company MLS book published Notify sellers of buyer loan approval Schedule showings Pick up lock box & sign Follow up on showings Close transaction Discuss showings & give feedback to seller Deliver proceeds to seller Be sure to inquire if there are any additional activities your real estate professional may have planned for your specific property and needs. After you have examined the marketing plan, look at it in its entirety. Only 8% of Buyers actually come from advertising and fewer than 4% of Buyers buy; the house they call about. Obviously then the vast majority of Buyers rely on other sources to aid them in finding the house that they want. Therefore, the REALTOR is the key figure in guiding Buyers to properties they will find appealing. We think that our associates are the best trained and the most well prepared anywhere in the country. They are well acquainted with marketing, qualifying, legal documentation, in short, everything involved in the sale of your house. Draw on their experience and let them advise you about what comes next
What Is A Competitive Market Analysis?
A Competitive Market Analysis, commonly referred to as a CMA, reviews specific information obtainable from your local Multiple Listing Service (MLS) to assess the range of property value based on the action between Buyers and Sellers in a real estate market area. A CMA appraises the market value of your home based on evaluation of the following situations:
Sold Properties
These are properties similar to yours, reflecting selling price of what recent qualified Buyers paid
Pending Sales
These are properties under contract but have not yet closed. Pending sales can be helpful in determining listing prices that secured offers from Buyers at the time your property is on the market.
Failed To Sell
These are properties which were recently listed on the market but failed to sell. Listing prices of these properties imply what price potential Buyers will not pay for homes similar to yours.
Active Listings
These are properties in which your property will be in competition with in the marketplace. Since they have not yet sold, their market value has not been determined.
Remember the word "Competitive" defines how your property will compete with other properties on the market. Your home is in direct competition with the other properties for the limited number of buyers in your market area.
When reference is made to market value, we refer to the highest possible price a property will bring when placed on the open market for a reasonable period of time. Do not select the services of a broker and agent solely on recommended list price, but on the overall marketing plan and commitment to service that will deliver the most potential Buyers.
Problems of Overpricing
Appropriate pricing is the key issue as it affects the length of time the property stays on the market. The longer the selling time, the greater the difference between the asking price and the selling price.
There are many other long term disadvantages in pricing your home above market value. Since pricing the home beyond the market keeps the property on the market for a longer period of time, here are just some of the things that become disadvantages to you as the Seller:
• Agents will show your home to Buyers, not necessarily as a property that they might want to buy, but as an example to support a better (lower price for a property that's comparable to yours.
• The Seller loses money in the long run because the property has been on the market a longer time while holding costs have continued to accrue.
• Buyer financing could be in serious jeopardy when the sale involves a high loan to value ratio. (This means that the appraised value of the property is less than the selling price. Banks and mortgage companies will not finance a property for more than the collateral value.)
• Overpricing lessens the property's chances for exposure because most agents want to present to their customers only the most favorable options.
• The brokerage company is in business to generate a profit. If a property is overpriced and therefore won't sell, the company will be more included to devote their advertising budgets to appropriately priced properties that very clearly would generate sales.
• The property can easily lose potential buyers in the "computer shun" whereby properties are listed within price ranges. If your property is above the upper limit on the computer run, Buyers will never even be able to consider your home.
• Due to its lengthy time on the market, the property runs the risk of becoming tagged as "shop worn". Then any offers that actually do come in will be well below what they could have been if appropriate pricing had been set at the start.
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What Conditions Can Impact The Sale Of My Home?
There are three types of conditions that can either increase or decrease the value of your home. Compare the following to the conditions of your home:
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