Appraisal Issues are Rampant in Ann Arbor Real Estate
Which way to Ann Arbor Real Estate?
Which way to Ann Arbor Real Estate?
Appraisal Issues are hindering the Ann Arbor Real Estate Market.  May 1st was the date that the Home Valuation Code of Conduct was instituted. This Code of Conduct applies to all mortgages being purchased by Fannie Mae and Freddie Mac and was intended to protect appraisers from lender pressure resulting in predetermined values. Video with Comments from National Association of REALTORS.
This legislation is causing more problems. Appraisals are now being ordered through third party companies which have resulted in any Michigan appraisers working in the Ann Arbor Real Estate Market. Forget if they know the area or not. They are chosen on price and availability.
Living Downtown Ann Arbor, MI

Living Downtown Ann Arbor, MI

In my opinion, the Ann Arbor housing market prices are being weakened by appraisals done by out of area or inexperienced appraisers.  Deatialed Ann Arbor Market Data in this link.  We have home buyers who are willing to pay market value or above for a home, but are thwarted. In certain situations we have a ready walling buyer and seller ready to go to closing and the appraisal prevents that from occurring. When the appraisal comes in low, it can take extra time to get the data from the appraiser to review. First I  want to assure that all the data was found and the best comps were chosen. I recently drove to the appraisers office to ask why he did not include a particular comp and he replied that his search did not find it because it was listed in our board from an out of area agent. Well, I found it and that makes me crazy because he is licensed and paid to do this.
Living downtown Ann Arbor, MI

Living downtown Ann Arbor, MI

Two of the most recent neighborhoods we had issues were Country French Estates and Wines School. We also had trouble with Thornton Farms but were able to close with all parties squeezing and messaging every penny. The recent regulation is exacerbating an already tenuous market situation. I understand that there have been past abuses of the system but this is not the remedy.  Sorry for ranting but now there is extra effort required to defend the Seller’s equity.
Click for a Visual Tour Click on photo for tour of Ann Arbor. Find out what your Ann Arbor Area home is worth.  Ann Arbor area market trends and how buyers need to plan ahead for appraisals and home inspections.   Download July Podcast
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