What's Happening with Appraisals?

The debate over appraisals is inflamed by a natural tension: Real-estate agents and mortgage brokers, who need to complete transactions to collect their fees, are unhappy when an appraiser nixes the sale price. But it also suggests that there may be unintended consequences to an attempt by New York Attorney General Andrew Cuomo to reform the appraisal business.Using the threat of litigation, Mr. Cuomo last year prodded the government-backed mortgage investors Fannie Mae and Freddie Mac into adopting a new code of conduct for appraisers. Since those two companies provide funding for the bulk of U.S. home mortgages, the code, which took effect May 1, has become the national standard for most home loans.The code bars loan officers, mortgage brokers or real-estate agents from any role in selecting appraisers. One result is that more lenders have outsourced the selection to appraisal-management companies, or AMCs, which take a sizable cut of the appraisal fee, often 40% or more. The AMCs pay appraisers as little as $175 to $200 per assignment, compared with the $350 or more that many get when they work directly for a lender."Many appraisers are struggling to survive on the fees paid by the AMCs," says Bill Garber, a spokesman for the Appraisal Institute, a trade group based in Chicago. Appraisers are being asked to work faster even as their fees are cut, and that conflicts with the goal of getting reliable appraisals, he says.Entire article here....http://customsites.yahoo.com/financiallyfit/finance/article-107568-2325-0-your-homes-value-threatened-by-appraisers

Take today's Housing News With a Grain of Salt

First-time buyers purchased 30% of all homes in July;

• Distressed homes accounted for 31% of transactions;

• The month-to month gain was aberrational, marking was the single biggest gain since 1999;

• Total housing inventory rose 7.3% to 4.09 million existing homes a 9.4-month supply;

• National median existing-home price fell 15.1% from July 2008 to $178,400;

For entire article:

http://www.ritholtz.com/blog/2009/08/strong-seasonal-gains-in-existing-home-sales/

The Market Divides

Very interesting take on the energy of the current market. We are finding this to be pretty accurate.


https://news.fidelity.com/news/article.jhtml?guid=/FidelityNewsPage/pages/real-estate-bottom&topic=real-estate

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What's going on in Quechee?

Weird update on sales and pendings: We went from turgidly SLOW activity throughout the winter with a couple of firesales in the $100,000s to: 4 house currently under contract priced at:

- $326,900, $599,000, $639,000, $659,000!

That's a huge change and a maybe the beginning of a trend. Are they smart people who cashed up before the stock market went totally strange and are dumping money into real estate? I hope so!

Quechee Sales

Four homes have sold in Quechee Lakes since September 18th of 2008. That's right...four. All have been, if not fire sales, very undervalued. Are we seeing the beginning of the Over-correction phase of the pendulum?

The stone chimney in Reading, Vermont just after Mud-Season.

The local real estate market continues to be a Buyer's Market, although Seller's that are realistic about the value of their properties are having success.

Here are year to date sales for homes in the area from January 1st to May 10th. These are homes that have been sold through the MLS.

Reading, VT: 645 Rt 106 List: $134,900 Sold: $128,500

750 Stone Chimney $ 169,900 $169,500

425 Bartley Rd $299,000 $232,900

Brownsville,VT:

975 Ski Tow Rd $269,900 $255,000

Woodstock, VT:

9111 Dana Rd $199,999 $190,000

541 Woodstock, Rd $237,000 $185,000

3541 Fletcher Hill $279,000 $214,000

45 Thomas $319,000 $319,000

2111 Austin Rd $349,000 $330,000

2754 Churchill Rd $495,000 $452,000

2182 Birch Way $739,000 $685,000

318 Prosper Rd $795,000 $725,000

27452 Church Hill Rd $1,150,000 $997,100

Notable: In the entire Town of West Windsor ( Brownsville ), Vermont only one ( ! ) house has sold ALL year, and that, a small house in the Ascutney Mountain Resort.

For the same period last year five had sold and they ranged in price from $290,000 to $1,062,500.

Ice floes tossed up onto the 2nd tee area of the Lakeland Course at Quechee Lakes Resort. It won't be long, golfers!


Sales in Quechee Lakes as of March 31, 2008:

3 homes
8 condos


Last year for the same period:
8 homes
3 condos

Very interesting.