Cindy's Blog

Well, I feel like I repeat myself with each post, but I've got to say that things are in fact selling, it is just more difficult. In the same vain, though, it is a terrific time to buy! With rates still consistently below 6%, and still quite a few programs out there that will help get you in a house, even if you're not the "dream borrower" that the media tells you you have to be.

Now, by no means, is it easy, but it is definitely still happening, and it is a great time to get a really good deal on a home. One thing that has been coming up more and more recently, is the fact that appraisals on those homes people are buying are leaning, in many cases to the lower end, so that's becoming difficult. In theory, if they're well priced to begin with, that 's less likely to happen, but it is definitely something to be prepared for, and the way that it's done has even become a good bit more difficult as well.

It used to be that appraisers could use comparables from within the last year, and there were usually a fair number of homes that they could use as comparables. Now, they will not take anything that is "older" than 6 months, and in a market that has not seen a great deal of sales in that time, that is quite difficult. Hence, it's harder for them to come up with homes that are truly comparable, and harder for them to get those comparables to come up with a good price.

So, be prepared, when you are getting a loan, that the lender is going to require an appraisal, and they will expect that it is at the sales price, or more, particularly if you are getting a standard loan. Basically, the bank is going to lend you 80% of the appraised value. If you are putting down 30, 40, 50%, the appraisal becomes less important, but for most people, this does become an issue, and it is, in this market, becoming more and more of an issue.