Marti Winkler Certified Residential Appraiser

In the last 2 weeks I have called 2 borrowers to schedule appointments for appraisal inspections, and have had them say "someone was just out here... someone was just here yesterday, and they walked around the house, took pictures, and asked us questions, etc.".

At first I was confused, thinking another appraiser had already been out to inspect the subject, and maybe this was a duplicate order (it happens), and then I started asking questions: Who was it that did the inspection? Was it an appraiser? In a small town like Sequim, you know the names of fellow appraisers and agents, word gets around, you hear things.

Typical answers were: No, it was Cindy Smith from XYZ Realty, and she did a really good inspection.

Right... no offense to real estate agents or Realtors, as I'm one myself (yes, I'm a member of NAR - read my profile). After the second time of hearing similar comments it clicked... these are real estate agents doing BPOs for the same lender that ordered an appraisal from me.

Nice... as if my job isn't difficult enough in this market. Now I have to handle questions like: Why wasn't the first one approved? Why do we need another inspection?

After I explain to them, tactfully of course, the difference between BPOs and appraisals, and why lenders might order BOTH OF THEM, I get them to agree to set up an appointment time, and proceed with the appraisal.

So, my question is this: Why are lenders ordering both BPOs and appraisals on the same property, seemingly within a few days of each other, and not notifying the borrowers and/or appraisers that this is the case? Aren't lenders facing enough problems and criticism with their current status to warrant at least a cursory explanation of what's really going on?

And, FYI, I showed up for an inspection yesterday and had the borrowers questioning me on the stabillity of the lender, AKA, sounds like Fells Margo, and if they were a good company or not and if they should trust them. WOW! How do I answer that one?

The times, my friends, they are a changing...

PS: I'm REALLY busy with appraisals = turn time is 2 weeks plus! I heard from a friend that a local lender is quoting a 60 day lead time for underwriting.

I did an FHA appraisal inspection this morning, and the owner casually mentioned what she and her husband thought their house should be worth. Of course, I always make a note of what they say, just for my records, and then proceed to explain the current reality of the market.

Funny how while I'm explaining that the market has dropped off about 12% in 2008 vs 2007, I can see the glazed over look in their eyes, and the reaction on the owner's face... you know, the one that says 'Well, that may be what the numbers say and how the overall market's doing, but that doesn't apply to my house.'

Of course not, your house is the exception.

Your house is worth WAY more than everyone else's, even though you still have the original vinyl flooring and formica counters from 1987 in the bathrooms, and the indoor/outdoor carpet in the kitchen and dining room.

No, your house is totally different and better than all the others, so of course it's worth whatever you think it should be worth, because that's what you told the lender, and that's what you need to make your loan work, and besides, you know the market.

I just smile and think to myself wow... some people just don't get it.

Delusion... coming soon to a community near you.

So the results are in for 2008 real estate sales, based on data in OLS (Olympic Listing Service), Area 300 (All of Sequim address), and while they're not great, they're not so bad either...

Here are the highlights:

For 2008, this includes sales of site built homes, off-site built homes (manufactured homes on non-leased land) and condos:

Total number of sales: 349

Average price: $294,298

Median price: $272,500

Average DOM: 128

This is a 12% decline in Average price, and an 8% decline in Median price vs 2007, and a 22% decrease in the number of transactions.

I have an Excel spreadsheet with more detail if anyone would like to see it... just send me an email and I'll send it to you.

Marti

The real estate sales market may still be slow in Sequim, but I'm really busy with appraisals now, and with the exception of 1 sale I did a couple of weeks ago, the rest are for refi's.

I talked to one of the reps at RELS today, and she said they were really busy too, which is great news...

Let's hope the sales market picks up too.