My New Blog

I have not been a good blogger the last year.  Many changes are occurring to the real estate market and the appraisal industry even as we speak.  And frankly, it has been difficult to keep up.  So I challenge those of us bloggers to write more about what going on in your part of the  market about these  constant changing market conditions, etc.  Post your remarks here if you want. 

Of course, the new HVCC (Home Valuation Code of Conduct) is out.  This new change has completely turned the appraisal industry on its head.  Basically appraisers are to have no more communications with the homeowner, realtor, etc.  with regard to the appraisal being completed.   All of the AMC'S (Appraisal Management Companys) are asking us to sign agreements stating we will not communicate with anyone except the contact to get access to the home.  If we are contacted, we must not disclose any information about the appraisal, and more importantly disclose the "who, what, and when" to the AMC.   

Most of our business is coming from the third party managers OR AMC'S now.  Making me wonder what to do with all of the email addresses I have accumulated during the past 10 years.  I have kept these for marketing purposes.  Guess for now I will hang on to them and see what finally "pans out" in this new environment. 

I will be posting the new HVCC on my site within the next week.  Every time I get ready to do this, I get a revised copy.  So with that being said, let me know what you think. 

Market Values continue to decline.   I talked to a competitor yesterday who said the market is so confusing that determining a good market value is difficult.  I could not disagree more.  Appraisers are slaves to the market, and as long as you are depending on an experienced appraiser to determine value, there will be no confusion.  In todays changing market, the most recent comps must be utilized along with several comparable listings.  And remember, the appraisal report will not be necessarily accurate after 60 to 90 days. 

Because there are going be many foreclosures, some of those sales should be considered in determining market value.  In my local MLS, realtors are choosing not to upload many short sales and foreclosure sales in the system.  I guess the reason would be that they might be used for comparable purposes.  As that might be true in some instances, its not giving a totally overall accurate view of the market.  This in turn does a dis-service to the market as a whole.   All comparable sales should be disclosed.  An experienced appraiser and realtor can determine if data should be used to determine market value.   

To a better 2009...

Recently I read an article in the Hattiesburg American, that quoted a realtor saying the local market is balanced.  I am not sure what that means, but if balanced means values are falling, many homes are on the market, and concessions are running rampant...then I will except balanced.  I prefer big time adjustments.   Those of us who have been in the the market during the past 4 years have been spoiled.  Listing were snatched up, asking prices were blown out of the water, supply was going down faster than a bottle of vodka at Cortney Loves' House.  That is not the case now.  Inventory is building, realtors are begging, and supply is growing like the alimony Britney will be paying k-Fed.     Seriously speaking....I think is time for all of us to except that values will be making a big time adjustment.  So lets pull up our sleeves, adjust all our listing down 10%, and quit trying to keep up the Jones'.  They could be taking us to a scary place in home ownership.  

http://www.hud.gov/offices/adm/hudclips/guidebooks/4930.3G/index.cfm

I get many calls everyday for appraisals in rural counties throughout Mississippi, Alabama, and Louisiana.  I have a great site for finding an appraiser in almost every county in these areas as well as other counties and parishes throughout the U.S.  This site is also good for finding brokers, lenders, and home inspectors.

http://www.xsitesnetwork.com/Directory/Default.aspx

What is a manufactured home and how does it differ from a modular home?

I keep getting ask this question and thought I would clarify the difference between manufactured homes and modular construction.  As you might know, modular homes have bursted on the scene during the past few years.  More blogging on this later but heres the difference as described by my website www.rscottpierce.com

A manufactured home (also known as a mobile home) is a single or multi-sectional home built on a permanent frame, like a steel undercarriage/chassis, with a removable transportation system (hitch and wheels). The unit is permanently attached to a site-built foundation and is subject to the 1976 federal standards established by the Department of Housing and Urban Development (HUD).

A modular home is constructed in a factory using conventional home floor joists and delivered to a site on a trailer or flat bed truck. The delivered home may be in the form of panels that are assembled at the site, may be pre-cut and assembled on site, or may be pre-built and delivered in one piece. The home, panels or pre-cut panels are lifted from the trailer and attached to a foundation. A modular home may be single or multi-storied. Modular homes are not subject to HUD standards, but must be built to state and local Uniform Building Codes.

During the past 2 years hattiesburg has experienced value increases up to 30%, and to talk to several home-owners and builders that percentage can be as high as 50%.  (forgive them for they do not know).  Hurricane katrina is the culprit for this confusion.  Demand has been very high during the last 2 years with transfers from new orleans and the surrounding southern counties and parishes. 

CORRECTIONS ARE COMING:

In the coming months we could see a correction in the market and notice values start falling in some areas.  With that being said; appraisers, and realtors,  are gonna be frustrated with "what happened" comments from homeowners and builders that think this trend of growing values will continue.  Remember appraisers are  "slaves to the market" if you will.  Even if cost continue to rise, market values will have to eventually effect builders who regularly use the excuse of cost over-runs. 

BE CAREFUL WHO YOU TRUST:

If your thinking of building a new home, look at the numbers hard, and do not always depend on the builder for your appraisal.  Builders generally have close ties to one or two appraisers which could make your future refinancing very difficult, when you find your original value was stretched by the builders appraiser.  I suggest two appraisals with almost every large transaction.  That extra fee could save you a lot of heart ache and money in the future.

THIRD PARTY APPRAISALS ARE BEST:

This is a new trend in the lending and appraisal business.  Basically lenders hire third parties to order appraisal reports.  Meaning, very little pressure is put on appraisers to hit a number.  These third parties can be found on line and include companies like...LANDSAFE, INC. AND APPRAISALPORT.    

LETS BLOG:  

Please add thoughts to this blog and I'll try to answer with future comments.  I appreciate you reading and if you need any real estate answers, etc., visit WWW.RSCOTTPIERCE.COM