Market shift and low appraisals SHORT VERSION Summer 2022
Hello, I wanted to do a quick video on the current state of the market and possible appraisal shortages. So I think the market not unlike in 2008, may indeed be ready for a, a shift. Is it gonna fall on correct and prices are gonna go down or crash? I don’t think so. Because we need… At least not in our area. Because in DC, Maryland and Virginia, we have jobs. [chuckle] We’re in a great jobs environment, people make good money, people have good credit in general, and I think that’s what supports values. So while things may not go up in crazy percentages going forward, I don’t know that there’s gonna be a massive correction. Maybe there will be in other parts of the country, I don’t know. But I know for our area, I feel like we’re, we’re somewhat insulated and that the damage if it’s coming, will be minimized. Having said that, there could be more appraisal issues to some small degree, and you have to be ready for that.
0:00:57.9 Speaker 1: And the, the highlight here is that you as a realtor need to be involved in the appraisal challenge process. And the appraisal challenge, I can tell you, you’re never gonna win it by arguing square footage adjustments or they took a bad picture of the [chuckle] bathroom, or they missed it, it’s never gonna work. You really need to find preferably three new comparables that the appraiser didn’t use. And don’t just do a zip code search, really go with a fine-tooth comb and find three really great comps or as close as possible that the appraisal didn’t, didn’t show and maybe missed, and show why you think that these are better comps, it might support a better value. Doesn’t mean you can’t debate if there was something egregious missed in the appraisal, but they’re typically isn’t. Appraisal challenge is really all about new comparables and making those comparables as good as possible, not just a gen… Like I said, a generic listing of, you searched in the zip code, and here we are, check square footage, check bedroom count, check, check every little detail that you can and make sure that the comps are as close as possible to the subject property.
0:02:06.4 Speaker 1: Not expecting there to be big drops in prices, like I said, not expecting there to be this increase in appraisal shortages. But maybe to a small degree, you might come across it a, a time or two, and it’s good for you to be prepared and, you know, really, really dig in and help your lender find really great new comps, that’s the magic. Take a look at the longer video, ’cause I go into a lot more detail and there’s really a lot more to it, if you really wanna be educated on the market and possible appraisal shortages and how to handle them. ‘Cause I’ve handled a few myself. You really should take a listen to the longer video. Thanks.