Quote:
Originally Posted by kingstu
I’m sorry to hear this. With home prices doubling during the past few years…there’s only one way they can go. If you were a bank and home prices were still falling…how anxious would you be to lend on current appraisals?
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Not anxious at all however, the problem is that the banks are partially responsible for continuing to drive values down. Appraisals are undergoing appraisal “reviews” with each file that’s submitted. The banks are countering with lower values than those prepared by certified appraisers using legitimate comparables.
Demand is much, MUCH higher than people perceive. One of my developers is averaging about 120 new prospects (walk-in’s) every month. That number has been consistent throughout the year. The problem? We write about 6 contracts a month and fail to close on 5 of them. Most of the buyers we lose can legitimately afford the home. They just don’t have the $50k in the savings the ass-backward banks NOW expect them to have.