Comments on: When the Appraisal gets “stuck” at the end http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/ Seattle's Leading Resource for Real Estate Information Sat, 20 Mar 2010 05:05:28 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: ARDELL http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156908 ARDELL Fri, 06 Jul 2007 04:34:05 +0000 http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156908 My stats have always agreed with this statement in the article. "The majority of King County's single-family homes sold for $200,000 to $600,000, with sales strongest in the $400,000 to $600,000 range." Though for Eastside that includes townhomes and condos as well as single family. I'm not feeling like doing stats...but since you asked. As usual I will post one graph here and the rest over on my blog as they take a lot of space. I'll try to do them tomorrow. My stats have always agreed with this statement in the article.

“The majority of King County’s single-family homes sold for $200,000 to $600,000, with sales strongest in the $400,000 to $600,000 range.” Though for Eastside that includes townhomes and condos as well as single family.

I’m not feeling like doing stats…but since you asked. As usual I will post one graph here and the rest over on my blog as they take a lot of space. I’ll try to do them tomorrow.

]]> By: Jillayne Schlicke http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156799 Jillayne Schlicke Thu, 05 Jul 2007 21:44:08 +0000 http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156799 Affiliated business arrangments, when operated the way HUD intended, work fine. However, doing so requires care and attention to HUDs rules. In the real world (not HUD's world), care and attention often go out the window in favor of the quickest route to profits combined with lax regulatory oversight. Some AfBAs are well-run, some are not. I owe Rhonda, Tim, and Diane Cipa a post on AfBA/CBAs. Affiliated business arrangments, when operated the way HUD intended, work fine. However, doing so requires care and attention to HUDs rules. In the real world (not HUD’s world), care and attention often go out the window in favor of the quickest route to profits combined with lax regulatory oversight. Some AfBAs are well-run, some are not.

I owe Rhonda, Tim, and Diane Cipa a post on AfBA/CBAs.

]]> By: sandy http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156792 sandy Thu, 05 Jul 2007 21:11:52 +0000 http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156792 Hi Ardell: I am pasting the link of the front page seattle times article: http://seattletimes.nwsource.com/html/businesstechnology/2003775906_webhomesales05.html How much of this do you see in your experience?Can I request you to post stats for May and June as you did before for earlier months pls? Hi Ardell: I am pasting the link of the front page seattle times article:

http://seattletimes.nwsource.com/html/businesstechnology/2003775906_webhomesales05.html

How much of this do you see in your experience?Can I request you to post stats for May and June as you did before for earlier months pls?

]]> By: ARDELL http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156777 ARDELL Thu, 05 Jul 2007 20:02:03 +0000 http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156777 Not sure why I'm defending AfBA arrangements, since it has been many years since I've used them. But when I did, the consumer absolutely preferred the "one stop shopping" method and convenience. Also the agents had a lot of pull if the consumer ended up with a problem during escrow or loan process. People jump through all kinds of hoops within AfBA relationships that clearly benefit the consumer. Just saying the pros outway the cons from my experience, and many consumers like the convenience. Those prone to "shopping" will anyway, don't you think? Most times they will simply try to negotiate with the AfBA rather than use someone else. This is more true of services outside of lender. Choosing a lender is probably the hardest part of buying property. Sometimes, even often, harder than choosing a property :) Now that I'm thinking about it, choosing the right agent, lender and home inspector IS harder than finding the right house. That's sad. So there's another reason AfBAs done well can save the consumer from a lot of headaches. Not sure why I’m defending AfBA arrangements, since it has been many years since I’ve used them. But when I did, the consumer absolutely preferred the “one stop shopping” method and convenience. Also the agents had a lot of pull if the consumer ended up with a problem during escrow or loan process. People jump through all kinds of hoops within AfBA relationships that clearly benefit the consumer.

Just saying the pros outway the cons from my experience, and many consumers like the convenience. Those prone to “shopping” will anyway, don’t you think? Most times they will simply try to negotiate with the AfBA rather than use someone else. This is more true of services outside of lender. Choosing a lender is probably the hardest part of buying property. Sometimes, even often, harder than choosing a property :)

Now that I’m thinking about it, choosing the right agent, lender and home inspector IS harder than finding the right house. That’s sad. So there’s another reason AfBAs done well can save the consumer from a lot of headaches.

]]> By: Rhonda Porter http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156775 Rhonda Porter Thu, 05 Jul 2007 19:47:05 +0000 http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156775 I have to agree with Tim re: AfBA's. Especially when the broker restricts outside reps (escrow, mortgage, title, etc.) from presenting information/products to their agents. It restricts healthy competition which does not benefit the consumer. I have to agree with Tim re: AfBA’s. Especially when the broker restricts outside reps (escrow, mortgage, title, etc.) from presenting information/products to their agents. It restricts healthy competition which does not benefit the consumer.

]]> By: ARDELL http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156774 ARDELL Thu, 05 Jul 2007 19:46:00 +0000 http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156774 Tim, Reality is that your pricing has to factor in rescission factors, since you are in a business where your competition is free for rescission. Kind of like a landlord with a high vacancy rate can't charge more rent to compensate and still compete for tenants. Shopping is just so NOT in my opinion with regard to escrow services or inspectors. These are not two areas where price should be the primary consideration. I would gladly pay the difference for a buyer to choose the best inspector if they are price shopping. Same with escrow fees. The difference in cost isn't worth choosing by cost. As to the end run signature regarding ability to shop, it would seem to me that is likely a confirmation of something they signed at time of contract. Not a "new issue", same as the buyer signing the loan application at the end. Just because they sign the loan application at the closing table, doesn't mean they've never seen it before. Same issue I think with affiliated business disclosure. I've never seen a company that uses AfBA's not have an AfBA addendum in the contract at time of offer and before they choose their services. Tim,

Reality is that your pricing has to factor in rescission factors, since you are in a business where your competition is free for rescission. Kind of like a landlord with a high vacancy rate can’t charge more rent to compensate and still compete for tenants.

Shopping is just so NOT in my opinion with regard to escrow services or inspectors. These are not two areas where price should be the primary consideration. I would gladly pay the difference for a buyer to choose the best inspector if they are price shopping. Same with escrow fees. The difference in cost isn’t worth choosing by cost.

As to the end run signature regarding ability to shop, it would seem to me that is likely a confirmation of something they signed at time of contract. Not a “new issue”, same as the buyer signing the loan application at the end. Just because they sign the loan application at the closing table, doesn’t mean they’ve never seen it before. Same issue I think with affiliated business disclosure. I’ve never seen a company that uses AfBA’s not have an AfBA addendum in the contract at time of offer and before they choose their services.

]]> By: Tim http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156759 Tim Thu, 05 Jul 2007 18:53:26 +0000 http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156759 Ardell, I know of very few instances where AfBA's have directly benefited consumers both financially and in a fiduciary capacity. Sorry this is off topic from appraisers. For example, I have countless times given disclosures to a client indicating afflilated business relationships within the loan package that the lender, title company or real estate brokerage has: stating that the borrower has the ability to shop. What is wrong with this picture? It's done at closing. Rediculous. PS. What do you think the response will be if I ask agents "what is your rescission rate?" Just teasing. Ardell, I know of very few instances where AfBA’s have directly benefited consumers both financially and in a fiduciary capacity. Sorry this is off topic from appraisers. For example, I have countless times given disclosures to a client indicating afflilated business relationships within the loan package that the lender, title company or real estate brokerage has: stating that the borrower has the ability to shop.

What is wrong with this picture? It’s done at closing. Rediculous.

PS. What do you think the response will be if I ask agents “what is your rescission rate?” Just teasing.

]]> By: Tim http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156757 Tim Thu, 05 Jul 2007 18:33:00 +0000 http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156757 I understand what you are saying Ken. I understand what you are saying Ken.

]]> By: Ken Crotts http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156749 Ken Crotts Thu, 05 Jul 2007 18:14:13 +0000 http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156749 Tim, I think you are taking my comment too out of context.. “Every person involved in the process from the Realtor to the closer “could have” done something to help the buyer avoid getting over their heads” Yes, we "could" have those conversations in theory. However each person involved the transaction will have a position just as valid as yours. The Realtor isn't even aware of the buyers’ actual credit scores and qualifications. The loan officer is trusting in the guidelines that say the buyer IS qualified. The underwriter followed established guidelines and the closer prepared the documents, explained them and closed the deal. My point is not to point fingers but to address the issue of culpability. I don't believe anyone involved in the transaction, who has performed their duties with integrity and professionalism, bears responsibility for the failure of a home buyer to fulfill their mortgage obligations. If the buyer was misled, lied to, uniformed or not given a proper disclosure then that is another matter. Foreclosures are already a hot topic in the media and in political circles. There is going to be some finger pointing going on by those outside of the industry because they need a bad guy. When the rhetoric starts and they ask why did you ...(fill in the blank), or you could have ...(fill in the blank). The "could have" in my comment is reference to the inevitable finger pointing by those on the soap boxes. Tim,
I think you are taking my comment too out of context..
“Every person involved in the process from the Realtor to the closer “could have” done something to help the buyer avoid getting over their heads”
Yes, we “could” have those conversations in theory. However each person involved the transaction will have a position just as valid as yours. The Realtor isn’t even aware of the buyers’ actual credit scores and qualifications. The loan officer is trusting in the guidelines that say the buyer IS qualified. The underwriter followed established guidelines and the closer prepared the documents, explained them and closed the deal. My point is not to point fingers but to address the issue of culpability. I don’t believe anyone involved in the transaction, who has performed their duties with integrity and professionalism, bears responsibility for the failure of a home buyer to fulfill their mortgage obligations. If the buyer was misled, lied to, uniformed or not given a proper disclosure then that is another matter.
Foreclosures are already a hot topic in the media and in political circles. There is going to be some finger pointing going on by those outside of the industry because they need a bad guy. When the rhetoric starts and they ask why did you …(fill in the blank), or you could have …(fill in the blank). The “could have” in my comment is reference to the inevitable finger pointing by those on the soap boxes.

]]> By: ARDELL http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156729 ARDELL Thu, 05 Jul 2007 17:27:30 +0000 http://raincityguide.com/2007/07/02/when-the-appraisal-gets-stuck-at-the-end/#comment-156729 What you are basically saying is that the "free" policy is based on % of business. If someone sends you 50 transactions and 2 don't make it, then waiving fees on those is good business. If someone sends you 10 and half don't make it...well that's another story. I don't think AfBA's are really the issue, though they likely have the advantage of the 50/2 vs. 10/5. Kim and I were talking about a Broker's monitoring of agents who have an unusually high percentage of rescissions. On the one hand I would never want to penalize an agent for valid rescissions, when rescission is in the best interest of the client. I'd rather see a rescission based on Resale Certificate or Inspection issues, than see an agent twisting someone's arm based on these issues. But if an agent is constantly rescinding based on things they should have been able to foresee...that's another story. I think that for a small escrow company, building relationships with agents who have low rescission rates could maybe be the compensating factor for AfBA issues. Personally I strongly support AfBA relationships, even though we do not foster them at present. Having been a Coldwell Banker agent for many years, I see many huge advantages to such relationships for consumers, when done well. What you are basically saying is that the “free” policy is based on % of business. If someone sends you 50 transactions and 2 don’t make it, then waiving fees on those is good business. If someone sends you 10 and half don’t make it…well that’s another story. I don’t think AfBA’s are really the issue, though they likely have the advantage of the 50/2 vs. 10/5.

Kim and I were talking about a Broker’s monitoring of agents who have an unusually high percentage of rescissions. On the one hand I would never want to penalize an agent for valid rescissions, when rescission is in the best interest of the client. I’d rather see a rescission based on Resale Certificate or Inspection issues, than see an agent twisting someone’s arm based on these issues. But if an agent is constantly rescinding based on things they should have been able to foresee…that’s another story.

I think that for a small escrow company, building relationships with agents who have low rescission rates could maybe be the compensating factor for AfBA issues.

Personally I strongly support AfBA relationships, even though we do not foster them at present. Having been a Coldwell Banker agent for many years, I see many huge advantages to such relationships for consumers, when done well.

]]>