The Appraisal Files

The dark side of our business is the short sale and the REO appraisals. I have been doing both at an alarming rate lately. I just completed a REO of a FHA property that had compressed air tanks in the crawl space rusting away. I do not know what gas was in the tanks and did not want to find out. I stated that a EPS stage one inspection should be completed to see if the home was contanimated with  hazzardous waste. Just another day you never know what you will find in the attic, crawl space, or that locked bedroom door that the "key has been lost". I never ask just note it and go on my way.

Dann

The dark side of my business is growing every day. The Real Estate Owned (REO) bank propery growing in numbers every day. The market is adsorbing the excess but a dear price. My data indicated that a REO property will be discounted at least 10% for under 75K 20% for 75-150K and 30% for homes over 150K. This discount over and above repairs, it is just what the buyers are offering to banks that have too many homes in stock. This is the biggest buyers market I have ever seen.

But good or bad every deal needs an appraisal which is good for my business.

Be safe, Be happy, Laugh a little and work a lot.

Dann Cann

The number of purchase money loans have tanked in this area. The refi business is a challange because most people have already borrowed as much as their home is worth. Had a call today wanting to know how much homes have increased in my area in the last six months. When I told the caller that home value is flat to declining the phone was silent for a while and then the caller hung up. I am sure he will keep calling to find someone that will tell him what he wants to hear.

Dann Cann