http://www.batonrougerealestatebuzz.com/ – Bankrate.com: Summary Of Real Estate Appraisal Rule Changes In Dodd-Frank Act 2010. These are the new rules that apply to Greater Baton Rouge Home Appraisals!
I have provided a few snippet paragraphs from this two page article below. Read the full article here: Real Estate Appraisal Rules Changing
“According to Lucien Salvant, a spokesman for the National Association of Realtors, or NAR, in Washington, D.C., the law is intended to:
*Strengthen appraiser independence.
*Sunset a problematic industry agreement known as the Home Valuation Code of Conduct, or HVCC.
*Regulate appraisal management companies.”
“Buyers, sellers can inform appraisers
That said, the end of the HVCC should help to clear up widespread confusion over who can present information — including data about recent sales — to an appraiser.
“The intent of the HVCC was to put a firewall between the lender and appraiser, but it put up such a big wall that everybody was afraid to talk to appraisers,” Salvant says. “The (new law) does say that Realtors and sellers and buyers can talk to (appraisers).”"
“Appraisal management companies
The new law also regulates appraisal management companies, or AMCs. AMCs aren’t new, but they have gained more control over real estate appraisers and appraisals in the 15 months since the HVCC was implemented.
The financial reform law requires federal oversight of AMCs controlled by federally regulated financial institutions. It also requires state registration of all other AMCs, according to the Appraisal Institute.”
“Questions to ask (editor’s note: should be rephrased “Questions AMC’s should be asking those appraisers they intend on hiring for the appraisal order”)
If there is an upside to the confusion over appraisals, it’s that homebuyers, sellers and homeowners are now more aware of these issues, says Richard Koestner, a partner at Koestner, McGivern & Associates, an appraisal firm in Davenport, Iowa. He says they are more likely to ask questions about the appraiser’s experience and expertise and calls the development “encouraging.” He also offers a few examples of questions buyers and sellers might want to ask:
How long have you been an appraiser?
How many appraisals have you completed?
How often do you appraise homes in this area?
How familiar are you with the local market?
Where do you get the data that you use in your appraisal reports?”
Read the full article here: Real Estate Appraisal Rules Changing
http://www.batonrougerealestateappraisal.com/ - Baton Rouge Home Sales Numbers At 11 Year Low
The Baton Rouge Business Report is reporting on a National Assocation of Realtors housing study “U.S. Home Sales Plunge To 15-Year Low” and I quote: “Sales of previously occupied homes fell to the lowest level in 15 years last month as the economy weakened. The National Association of Realtors says July’s sales fell by more than 27% to a seasonally adjusted annual rate of 3.83 million. It was the largest monthly drop on records dating back to 1968. June’s sales pace was revised downward to 5.26 million. Home sales picked up in the spring when the government was offering tax credits. But the market has struggled since the tax credits expired on April 30. It would take 12.5 months to sell off the 4 million unsold homes on the market at the current sales pace. The median sale price was $182,600, up 0.7 percent from a year ago.”
While the NAR study covers the entire U.S., how does the local Baton Rouge housing sales numbers compare? The answer is that I see a similar trend. Within the Greater Baton Rouge Association of Realtors data extracted from 1999 through August 24, 2010, covering almost 12 total years, for all of East Baton Rouge Parish itself, the lowest yearly rate of home sales has been in 2010 with 2,032 year-to-date. If this pace of home sales continues, 2010 projections will total 3,048 sales, the lowest within the 12 year period.
What about a monthly sales numbers comparison? This comparison leads to the same conclusion. The two lowest monthly housing sales periods in East Baton Rouge since our MLS began tracking the numbers in 1999 have taken place in 2010, see chart.
HOWEVER,
I want to responsibly point out that just because the “number” of home sales have been declining in 2010 doesn’t mean the “housing prices” are equally declining significantly! And, this is an important point. As a home appraiser, the one thing I hear from local homeowners is a misunderstanding of the local market. They say things to me like, “I know this is a horrible time to be refinancing and getting an appraisal with the housing market the way it is, but we just couldn’t pass up the low mortgage rate”. I hear this constantly from locals and you can’t watch the national news and apply that to our local market. Linda Fredericks, former President of the Greater Baton Rouge Association of Realtors, is correct when she delivered the message that housing marketings are “local” and you can’t apply the national news headlines to a one size fits all local housing market!
Take The Baton Rouge Business ReportPoll: When will the U.S. housing market recover? So far results are:
NOTE: Data Used With Permission of the GBRAR MLS. Data was extracted on 8/24/2010 from periods 1/1/1999 through 8/24/2010.
Tags: Baton Rouge Economic Report, Baton Rouge Homes For Sale, Baton Rouge Housing Market, Baton Rouge Real Estate, Baton Rouge Real Estate Agents, Baton Rouge Realtors
http://www.batonrougerealestateappraisal.com/ – With Federal Tax Credit Expiration, Greater Baton Rouge Home Sales Numbers Decline Into July 2010!
The Baton Rouge Business Report Daily PM Report is report a Capital Region home sales plunge of 21% in July 2010. “The number of homes sold in metro Baton Rouge fell by 21% in July compared with the year before, as the market corrected itself after being bolstered by the federal homebuyer tax credit. There were 523 homes in the Capital Region sold in July, compared with 665 sales in July 2009, according to figures from the Greater Baton Rouge Association of Realtors Multiple Listing Service. An $8,000 tax credit for homebuyers expired earlier this year, and transactions had to be under contract at the end of April to qualify for the money. That led to Capital Region home sales posting 21% and 28% increases in April and May over last year. The average sale price in July was $197,076, down from the $203,735 average in July 2009. Sales were down nearly 31% in Ascension Parish in July, from 111 in 2009 to 77. Livingston Parish saw a 25% drop, from 114 homes changing hands to 85. In East Baton Rouge, there was a 24% drop in home sales, from 414 to 313. The other category, which includes MLS sales in West Baton Rouge, Iberville and the Feliciana parishes, actually saw an 85% increase, from 26 to 48. Through the first seven months of the year, home sales continued to run slightly ahead of the 2009 pace. There were 4,107 homes sold through the end of July, up 3% from the 3,985 sales total at the end of July 2009.”
