Some of our Lifestyle Videos

Free Home Value Report Search For Homes

Expert Tips for Home Buyers & Sellers

As your Chicagoland real estate agent Michael LaFido, I want to be your resource for all things real estate. Whether you are buying, selling, or investing in real estate, I am here to guide you through the process. Subscribe to this blog to learn all of the latest news from our local market and receive expert tips for buying or selling a home.

Is Your Chicagoland Home Going to Be Under-Appraised?



Considering Selling in 2015: Click here for a Free Price Evaluation


Considering Buying in 2015: Get Gateway Access to the MLS

Have you been following the guidelines of appraisers? If you're buying a home in Chicagoland, unless you're paying cash, your lender is going to send out an appraiser to ensure the home is worth what the contract price is. Nationally, roughly 26% of homes across the country last year appraised below the contract price.

I have a feeling that number is going to skyrocket this year.

It's not that the market has gotten worse;
rather, the new collateral underwriting guidelines that went into effect January 26, 2015, are going to negatively affect appraisals. If you're thinking about selling, I recommend getting a pre-appraisal done with today's regulations.

The new rules mean that when an appraiser comes out to a property, they are going to be graded on a scale of 1-5. If the appraiser is graded a 3-5, they will be red-flagged and may not get funding from that lending source anymore. This means that appraisers are going to be much more conservative in their valuations.

Appraisals are now automatically scored against 20 "comparable" properties. Bottom line: It's a very complicated process that will likely result in more appraisals coming in below the contract price. So, if you're buying or selling a home, it can be very frustrating because the home in question may not appraise well. However, if you are using a FHA, jumbo, or portfolio loan, your transaction won't be affected by this new process.

If you have any questions about the new guideline, or if you need real estate assistance of any kind, don't hesitate to reach out to us by phone or email. We're always available to chat and would love to hear from you!

2 comments :

  1. Thanks for sharing nice post i will share this
    Properties

    ReplyDelete
  2. There are various dissertation sites on-line since you also receive plainly claimed in your website. Austin Texas Homes For Sale

    ReplyDelete