Lenders Could be Held Responsible for Appraisal Selection

Many of you have been hearing me rant for some time now in regards to the nightmare we are experiencing here in Lake Tahoe in regards to the lending/appraisal dilemma in which we keep finding ourselves in. And, we are not alone. When recently attending the California State Business Meeting in June, I heard the same sad stories across the board. It didn’t matter if it was a metropolitan area or a small country town. The number of folks missing out on the purchase or sale of a home due to a poor appraisal (usually from lack of local knowledge) is running rampant. Hopefully, relief or at least perhaps the pendulum is beginning to swing back from the extreme.

TOn June 30th, Fannie Mae took a step at improving the quality of residential appraisals, by including a requirement that lenders CANNOT use incompetent or inexperienced appraisers. This step was highly applauded by the Appraisal Institute. Fannie also provided further guidance on how comparable sales should be determined and at the same time, are requiring lenders to explain any adjustments made to a property’s appraised value.

Among the guidelines, Fannie will require appraisals to included interior photos. Sadly, a number of borrowers have intentionally vandalized their homes which lowers the value of other homes in foreclosure. They are also letting it be known that lenders are not required to use an AMC and that they are within their rights to speak with an appraiser. Furthermore, the appraiser must respond to a lenders’ request to talk. It should be noted however, that the current HVCC’s rule that loan production staff may not speak with the appraiser still holds true.

These new guidelines with the hope of correcting some of the “unintended consequences” of the Home Valuation Code of Conduct, will begin on all new loans started on or after September 1, 2010. We say hurrah and let’s start to get some of these loans funded and closed. According to Appraisal Institute Government Relations Committee Chair, Richard Maloy, “The buck now stops at the lender.” :Fannie is saying the lender is held responsible for the appraiser’s selection even if they were selected by an AMC.” Personally, I don’t feel that a lender should be held responsible but I will take any steps necessary to clean up this mess. Truly, just as Don and I would never think to represent a client in an area in which we are not fully knowledgeable, I have to believe most ethical and experienced appraisers feel the same way.

1622 Meadow Vale

THIS HOME IS CURRENTLY IN ESCROW. PLEASE FEEL FREE TO CALL WITH ANY QUESTIONS OR FOR FURTHER DETAILS.

THIS HOME IS NO LONGER AVAILABLE.  Those of you looking for the least priced home in an expensive neighborhood, will want to check out 1622 Meadow Vale located in the Country Club Estates neighborhood. In a nutshell, we call this being in the “Right Price, Right Time” environment. This three bedroom home is surrounded by State Conservancy land providing extra privacy and tranquility. The large sunny deck overlooks forested land and in the front of the home, there is a roomy covered porch area ideal for those hot summer afternoons. At one time, this home had a single car garage however, that garage has been converted to a third bedroom. If desired, one could revert back to the original design. The ability to add a second bathroom is already in place. The ranch style lay-out provides the ease of single floor living. Whether one is looking for an investment, an affordable starter home or a tranquil Tahoe “get-a-way,” this home provides plenty of potential.

South Lake Tahoe Real Estate Market Update, June 24- June 30

This past week the amount of listings was down 10 from the previous week. According to the South Lake Tahoe Association of Realtors’ MLS there were 23 NEW (or back on the market) listings. The lowest priced new listing was 1592 Allen Rae for $244,900, a 4 bedroom, 3 bath home with 1847 square feet. The highest priced new listing was $1,040,000 for 428 Wedeln Ct., a Tahoe Keys home with 4 bedrooms, 3 baths and 2178 square feet. The overall median asking price last week was $465,000.

There were 7 NEW ESCROWS this past week, up 1 from the previous week’s 6. The lowest pending sale price was $179,900 for 2529 Osborne, a 2 bedroom, 1 bath with 775 square feet. The highest pending sale price was $895,000 for 2245 Del Norte, a Montgomery Estates home with 4 bedrooms, 3 baths and 4407 square feet. The overall median home price among last week’s pending sales was $349,000 with an average time on the market of 102 days.

Fortunately there was a large increase in the number of homes that were sold this past week. There were 18 CLOSED sales, up 10 from the previous week’s 8. The lowest sale price was $148,000 for 1008 Eagle, a North Upper Truckee home that needs to be entirely rebuilt with 3 bedrooms and 1992 square feet. The highest priced sale was $875,000 for 344 Uplands, a 4 bedroom, 3 bath with 2940 square feet. The overall median sale price for the past week was $327,000 with an average time on the market (including the escrow period) of 121 days.

697 Seneca, South Lake Tahoe, CA

THIS HOME HAS SOLD. PLEASE CONTACT US IF YOU WOULD LIKE TO FIND SIMILAR HOMES. Every now and then, we come across a home that is just pristine in every way – setting, condition and charm.  And think about it, if you are heading to Lake Tahoe with the goal of getting out of the city, the last thing you will want is noise and high energy.  With 697 Seneca, you can almost always count of starry nights, crystal blue skies and the sounds of Mother Nature from dawn to dusk.  Located in the peaceful North Upper Truckee neighborhood, this timeless gambrel home features the convenience of downstairs living.  Here you will find a spacious living room, a delightful custom kitchen, a roomy dining area leading to a private yard and a full bath.  Upstairs are three sunny bedrooms and the second full bath. Throughout the home, it is apparent how much remodeling has taken place.  These upgrades include new pine doors, newer appliances, flooring, light fixtures and counter tops.  The package is complete with the decor accent colors throughout.

When you step back outside, you will find an oversize newer deck ideal for outdoor entertaining or simply to kick up your feet to soak in the Sierra sun.  Another big plus is the off-rad parking allowing for gatherings of large families and friends, even in the winter when street parking is not allowed during snow removal.  Adjacent to the right and behind the home are government-owned land allowing for extra privacy and quiet.  If you are the type that has plenty of Tahoe toys or prefer a warm dry car in the winter, you will be thrilled with the double garage.  The fenced yard is yet another bonus providing a safe environment for children and pets.  Sale is subject to bank’s approval of a short sale.

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