Posts from — January 2011

Comparable Selection

When you provide appraisers comparables, make sure that is what they are. If the subject house is 3 bedroom 2 bath, 1,600 sf in Lakewood Please don’t hand the appraiser a home that is 4+ bedrooms over 1,900 sf and over a mile away in Long Beach, and over 6 months old.

Current underwriting has changed for loans. Lenders want to see a minimum of 3 sold comps within the last 90 days. As well as 2 Active or Pending sales.

I typically try to stay as close to the subject as possible for starters. If the house is 3/1, I will focus one finding other 3/1’s first, then expand t 2/1’s and 4/2’s. I want to bracket the square footage. If the subject is 1,600 sf, I want comps that are less and more then 1,600 sf. Remember, we are trying to find the best match to the subject if possible.

Also, tell the appraiser was comps you used in determining the list price. The more information you can provide to the appraiser the better.

Sometimes, the best thing you can do when you think it might not appraise for the price your sellers wants to list is for, call me. I can help, by providing an objective opinion from a third party. I can do this for a small fee.

If you have any Apprasial Needs in Long Beach/Lakewood or surrounding areas, call me at 562-673-1138 or go to my website www.wallaceRES.com

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January 31, 2011   No Comments

Current Long Beach Real Estate Market as of 1/24

The current Long Beach Market remains sluggish, we are still in a “Buyers Market” . The Market Action Index(MAI) is still below 30, anything below is a buyers market, anything above is a sellers market. The 90 day MAI stands at 17.20. The inventory has been tightening and the days-on-market has been increasing to an average of 165 days. This is not good for the overall market.

Agents, these reports from an appraiser, along with your CMA are a great tool to bring to a listing interview.  An added feature would be a Desktop Appraisal of the subject house.
If you are interested, please call Craig Wallace at 562.673.1138

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January 25, 2011   No Comments

Total # of Appraisers in Long Beach

I was curious as to the total number of appraiser there are in the city of Long Beach

 I went to the OREA website looked them up. Then, I decided to see how many are independent fee appraisers and how many are not. Any appraiser listed as working for a bank or a government agency I assume are not independent fee appraisers.

So, we have a Total of 149 Appraisers in Long Beach, of which, 140 are Independent Fee Appraisers. Look at the number of Trainees, only 14. Do you think we are going to have a problem in the future as some Appraisers retire or leave the industry? That is a different topic all together.

 Next I was curious to see how many closed sales of Condos and SFR’s there were in Long Beach for the past 4 months. I also wanted to see how this would average out to work for those Appraisers. I did not include Certified General Appraisers since they focus mainly on Commercial work. I also did not include Trainees since they can not really do work on there own. That left only Certified Residential and Licensed Residential Appraisers, a total of 84.

 I then took the total number of closed sales and divided that by the number of Fee Appraisers, as you can see that was between 2.7-3.0 Appraisals per Appraiser in Long beach, not including January. I guessed at a conservative post HVCC/AMC fee for an appraisal of $300. Basically each Appraiser would be making $775 -$866 per month.

 

Wow!

This does not include the fact that appraisers from other areas come to Long Beach.

 Basically, there is not enough work for the Appraiser that remain to make a decent living on, couple that with the low fees being paid and the fact that we lost most of our clients when the HVCC went into effect, it is no wonder the ranks are thinning.

To me this looks like a good argument to band together and demand a higher fee.

 What do you think?

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January 21, 2011   No Comments

A Look at the most Recent Data for Long Beach

 

This is a look at the current Real Estate Market for Long Beach. If you would like some custom information or to get a copy of one of are reports, send me an Email or Call Wallace Real Estate Services – Appraisals at  562-673-1138

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January 20, 2011   No Comments

“Comp Checks & Value Checks” the legal way.

Comp Checks, Value Check, etc….

 There was a moment in the “Boom Time” that appraiser would often get calls from Mortgage Brokers for “Comp Checks” or Value Checks”.  Most of the time, this was a LO simply shopping for an appraiser that could “hit the number”.  The problem was that a Comp/Value check was an appraisal and we could be liable for it.

 Well a few years back I read an article about a guy that actually created a USPAP Compliant Value Check. What a great thing I thought. I got a hold of the guy, and he sent me all the information on how to do them legally.

 The other day I stopped in and talked to a Branch Manager at a Mortgage Office to offer my Pre-FHA Appraisal Inspection Service, and he asked me about Value Checks.

 Yes, WRES offers value checks.

 Why might you need one? In this current Real Estate Market, it is hard to know the value of something. A Value Check can provide a quick value to see if a refinance can work. Maybe you want to make an offer on a property, are concerned about the value.

 A USPAP Compliant Value check is a simply way to check a range of value. In no way will it replace what a Full Appraisal can provide.

 If you need a Value/Comp Check, please call Wallace Real Estate Services– Appraisals at 562-673-1138 or email us.

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January 19, 2011   No Comments

What effect does location have on Value?

 

I was doing an appraisal today in Long Beach, and came across this area.  The wall you see in the video is the sound wall for the 405 Freeway, you can here the noise from the freeway over the wall. The road is a one way street from the neighborhood, but is also and exit from the freeway feeding to anther main road.

Do you think these external factors will have an effect onthe value of the home on the corner. do you think a home in the middle of the neighborhood might sell for more?

Let me know what you think.

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January 14, 2011   No Comments

Desk Top Appraisals for RE Agents and Loan Officers – A fast solution to obtain a value.

By Craig Wallace, Long Beach Appraiser

What is a desk top appraisal and how can it help you?

A desk top appraisal, is an Appraisal done without actually going to the subject property. All information is gathered from online sources such as; MLS, Realist and Public Record. I also get information from  Real Estate Agents if they have first hand knowledge of the property.I then proceed just like a normal appraisal. I look for comparables within the subject market area. In our current crazy market, I try and only go back 90 days.  Once my comparables have been selected and depending on what form I use, I can apply adjustments for upgrades, condition, square footage. One form I can use is strictly for a quick analysis based solely on the sale price without adjustments. 

Desktop appraisal provide a quick effective way for a buyer to see if the property they are interested in is worth the asking price. A Real Estate agent might need this for there seller to help determine the market value.  A Loan officer might need this for a Refinance to determine the loan to Value Ratio. 

If you have any questions or a need for a Desk Top Appraisal in the Long Beachor Surrounding Areas, give me a call at 562-673-1138, send me an email or find me on Facebook and Twitter.

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January 12, 2011   No Comments