Appraisas getting tougher
Today's Sarasota Herald Tribune ran the story below. It focuses on the trouble appraisers are having valuing properties in a declining market.
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Cooling market challenges appraisers
BY KENNETH HARNEY
WASHINGTON POST WRITERS GROUP
In cooling real estate markets, it's the hottest question: How do you value a specific piece of property when local home sales are down 20 percent to 40 percent from last year, inventories of unsold homes have ballooned by 200 percent or more, and all the trend lines are pointing negative?
It can be tough. Traditionally, real estate appraisers focused heavily on sales of similar properties -- "comparables" that closed in recent months -- to make their valuations. But that doesn't work well in markets that had been superheated -- prices rising at 1 percent to 2 percent a month -- but are now stalled out or falling.
Continue reading at http://tinyurl.com/nffzx
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Cooling market challenges appraisers
BY KENNETH HARNEY
WASHINGTON POST WRITERS GROUP
In cooling real estate markets, it's the hottest question: How do you value a specific piece of property when local home sales are down 20 percent to 40 percent from last year, inventories of unsold homes have ballooned by 200 percent or more, and all the trend lines are pointing negative?
It can be tough. Traditionally, real estate appraisers focused heavily on sales of similar properties -- "comparables" that closed in recent months -- to make their valuations. But that doesn't work well in markets that had been superheated -- prices rising at 1 percent to 2 percent a month -- but are now stalled out or falling.
Continue reading at http://tinyurl.com/nffzx
posted by Dan Forbes at
7:13 PM
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