Sarasota Real Estate Appraisals Not Representing True Market Values, According to Sarasota Bay Real Estate
With the recent spike in the number of home foreclosures and these properties' eventual re-entry into the market, real estate appraisals are not often representing true market values. Real estate agents and home sellers will have to work even more closely with each other in order to have a more accurate appraised value for a sales-listed residence, reports Sarasota Bay Real Estate.
Sarasota, FL (PRWEB) December 05, 2012
With the recent spike in the number of home foreclosures and these properties' eventual re-entry into the market, real estate appraisals are not often representing true market values. Real estate agents and home sellers will have to work even more closely with each other in order to have a more accurate appraised value for a sales-listed residence, reports Sarasota Bay Real Estate. The realty firm noted their national survey conducted this September that one out of three realtors encountered problems regarding home appraisals. The issues raised included: cancelled contracts because of an appraised value lower than the negotiated price between buyer and seller; reduced sales price due to a lower appraisal; and delayed sales contracts.
These problems usually arise when a lender's hired appraiser is unfamiliar with the nuances of the neighborhood where the residence for sale is located. What the appraisers simply do, aggrieved real estate agents claim, is just compare a home's value with similar properties in the neighborhood or those in its surrounding locality. The appraised value can fall below the contract price if the home happens to be located in an area with a lot of foreclosures.
Notably, Florida is the top state in the country in terms of foreclosure inventory. According to a study by CoreLogic, the Sunshine State had 91,888 completed foreclosures in the twelve-month period ending August 2012. This amounts to 11 percent of all homes mortgaged in the state. Reflecting this state-wide statistics, a total of 740 foreclosures were reported for Sarasota County this October, up 34 percent from the September level. The same trend was also observed in Manatee County where 644 total foreclosures were recorded for October 2012, an 82 percent jump from September.
Educating the Appraiser
Complaints are recurring that lowball appraisals are hurting home sales, reports Sarasota Bay Real Estate noted, citing a National Association of Realtors statement that, based on a recent survey, appraisals in some cases lag behind the recovering home market. To minimize such instances, Sarasota Bay Real Estate suggests that home sellers and their real estate agents prepare and furnish an appraiser written materials or documents including pertinent information regarding home improvements or any other data that would accurately indicate the value of the property.
Lenders typically have an arms' length relationship with appraisers and cannot communicate directly with them. However, direct communication with appraisers is allowed for the buyers and sellers and their real estate agents. The brokers can help establish an accurate property valuation by providing the appraiser with information not only on comparable sales but also on how the sale price or contract price value was estimated.
It is also important to note that appraisers will typically give most weight to a property's location. Other factors that are critical in the valuation include the square footage of the property and its condition. Some appraisers will base their estimate on three comparable sales that were closed in recent months, a current listing, and a pending sale that are most comparable to the home being appraised.
About Sarasota Bay Real Estate
Sarasota Bay Real Estate is a full service real estate brokerage in Sarasota Florida owned by Sarasota real estate broker, Christina Miller, and marketing professional, Roy Hunter. Together they, and their team of well-experienced agents, provide some of the highest quality real estate marketing services for the properties in the company's inventory. Sellers of Sarasota Florida real estate choose Sarasota Bay Real Estate due to their reputation of going above and beyond expectations when marketing properties located in the Sarasota-Manatee County areas as well as the company's vast Internet marketing reach. Sarasota Bay Real Estate Internet assets receive more than 1,000 visitors a day and this exposure contributes greatly to a property selling quickly and for the highest price. When property marketing strategies are paramount in sellers listing requirements, Sarasota Bay Real Estate is the clear choice in the Sarasota real estate market.
Contact information for Sarasota Bay Real Estate can be found at http://sarasotabayrealestate.com/
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