More Twists and Turns Selling Real Estate These Days! What Will Be Next?

By
Real Estate Broker Owner with Teri Ellis at Homes Arizona Real Estate LLC

The real estate market in the Phoenix, Arizona and Mesa, Arizona valley is going through more twists and turns as more short sales and foreclosed homes come onto the market.

Cash is King Unfortunately, many buyers are competing against cash buyers – and losing.  The old saying, “cash is king” is true in this competitive  real estate market.

Recently one of my buyers made an offer on a foreclosed property. Over asking price, very clean, and a desirable offer to any potential seller. However, the buyer lost out to a cash buyer even though the cash buyer offered less. Even the REO agent wanted my buyer to get the home, but has no say!

Why? You might ask? Would the bank accept a cashlower offer? In our market, appraisals are all over the place. As of May 1, in order to “fix” or “remedy” the problem, a new federal Home Valuation Code of Conduct  was placed into effect. No longer are the lenders allowed to speak with the appraisers – nor are they allowed to “choose” or "select" the appraisers they know to be reputable, savvy, and aware of the market in which the property is located. Bottom line? It’s a mess!

The left hand doesn’t know what the right is doing, homes are not appraising, and there are multiple bids on the most desirable homes.

cash In spite of these issues we face, Realtors will continue to push through the paperwork, the difficult appraisals, and we will write two, three, four and more offers in order to get our buyers a home. Ridiculous? Yes!! BUT, this, too, shall pass! Maybe, just maybe, we'll get a seller, a seller's agent, a good appraisal, and close on a home like we did in years' past. Could happen!

For more insight and understanding about what’s going on with the new appraisal process, click on the links here and here.

Mesa, Arizona Real Estate. Call me at: 480.216-3334 for information on purchasing or selling a home in Mesa, Arizona or surrounding towns. OR email me: Teri@TeriEllis.com. Feel free to visit one of my websites: HomesAzRE.com, ServingMesaArizona, MoveToMesaAz.com or MoveToSunnyAz.com. Or stop by my blogs at: MesaAzRealEstateVoice; or Phoenix Valley Real Estate Blog

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Topic:
Real Estate General Information
Location:
Arizona
Groups:
Arizona Homes
1st Time Buyers
Advice for Buyers
Advice for Sellers
Tags:
teri ellis
short sales
bank owned homes
appraisal changes
cash is king
real estate in mesa az
buyers
sellers

Comments 18 New Comment

Rainmaker
151,226
Carol Lee
Realtor - Agoura, Oak Park, Westlake CA Homes
Dilbeck Real Estate

Cash may be king, but I have had cash buyers make (or want to make) ridiculous offers because they are all cash.  So what, so are a lot of others.

Regarding the appraisals, the intention may be there, but the reality is that sometimes we need to be able to communicate to the appraiser, and explain certain facts that may not be available on the MLS.

And people think we don't earn our salaries?  Ha!

June 04, 2009 08:25 PM
Rainmaker
90,211
Craig Chapman
The Value Guy
Call Realty / Access Appraisals

Here is an interesting note for you all about the HVCC that everyone is screeming about.  It DOES NOT APPLY TO FHA LOANS.  That is right, if your sale is a FHA loan the lender can still pick their appraiser & talk to them.  kool.  So if your buyers loan is with in the FHA limits, it may be advisable to consider a FHA loan.  It may help solve some of the potential problems that could arise with using a conventional loan under the HVCC.  

Good luck

Craig Chapman - the value guy    I'm a sales agent & a certified appraiser & see both sides of these issues.  Feel free to contact me with any questions. 

accessappraisals@msn.com

 

August 03, 2009 10:25 PM
Rainer
114,872
Kyle Jan
Phoenix AZ Homes for Sale

Craig is right as of today, but FHA announced on friday that it will stop allowing FHA appraisals to be ordered directly by brokers and correspondents as of 1/1/2010, so there will be issues there also.  They will also be ordered by someone other than the locals who have a better more realistic understanding of the market.  Use FHA while you still can. 

September 21, 2009 01:33 PM
Rainer
25,760
Pat Kady
Keller Williams Check Realty

Hi Teri,

Our market here in Prescott is similar ..Oh for the good old days

 

February 24, 2010 09:57 PM
Rainmaker
90,211
Craig Chapman
The Value Guy
Call Realty / Access Appraisals

Yes, Fha did change to the HVCC.  However, what most lenders don't seem to understand is that the HVCC does not mean they have to use an appraisal management company AMC who typically send appraisers out from all over to all over for low pay.  Since the HVCC has gone into action, the AMCs have seized about of 80% of all appraisal work in the country, away from a lot of good appraisers who had worked for years developing those clients & business.  There are HVCC compliant ways for lenders to order appraisals through companies like Mercury Network which is not a AMC.  They have a huge network of appraisers & don't jack the appraisal fee way up like many AMCs do.  The appraiser gets his normal fee for his regular area of coverage.  They order on a rotation, but my understanding is that a lender can choose a number of appraisers they know to be reliable to have on their own rotation list.  So when they order a appraisal, instead of getting some stranger, even though they would not know the exact appraiser being selected for that appraisal, they would know it was one of the ones they had in the system.  I just heard of this & need to check it out, but this could begin to change things a bit.  Tell your lenders to check out the Mercury system, it costs them nothing & could start to solve some of their appraisal problems.

April 02, 2010 02:37 PM
Rainmaker
412,157

Mesa, Arizona Real Estate Mesa Arizona Realtor

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