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Showing posts with label banking. Show all posts
Showing posts with label banking. Show all posts

April 8, 2011

The Appraisal Industry In The Post-Housing Meltdown Period

Good Morning,
   Glad you can make it with us on this Friday, and I hope your week has been outstanding.

   In the tumult of the Housing Crisis (or "meltdown", if you prefer to call it that), the Government has taken a stern look at all of the moving pieces of the Real Estate and Banking industry(ies). One vital piece included in this is the Appraisal Sector.

   "Appraisal companies must do more for less in today's market. In today's market they must be highly competitive and with foreclosures distorting comps, they are both rushed and pressured to bring in business.", says Robert Shemin, a NY Times Best Selling Real Estate Author-Expert. Shemin says that for example, "you'll find one block in a neighborhood where 3 home-buyers have paid $200, then 2 foreclosures happen at $110, and its a difficult business"

   Another professional, James Manning, says that "The banks & ABCs still control the appraiser by means of Appraisal Management Companies who distribute the appraisal orders and take a huge slice of the fee." He says that, "If you don't play ball, you are off the roster. I don't see how the industry can survive."

   Despite the market upheaval, Melinda Crump with Sageworks, Inc, has pointed to some private sector data for industries related to real estate, and said that, "sales in a number of industries trended downward alongside the housing market as expected. Sales, though, have increased now for the appraisers".

   Are you an Appraiser? How have recent changes and trends effected your business?

Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com