Through the Appraiser's Eyes

I read an article today in a local paper talking about the decline in home sales. Now anyone who reads the paper or watches the news is not hearing anything new from me. But what you might not be aware of is that this article went on to say that Even though the state of Rhode Island, (one of the states I service)has seen an increase in pending sales many of them are not closing. People with excellent credit are having a hard time getting mortgages. Short sales (that is a sale were a bank allows a seller to sell their home for less than is owed) are not going through.

There are people out there who want to buy homes and with all the REO's(Real estate owned, properties that banks take back) there are some incredible opportunities out there.

I wish that banks would realize that part of the reason that there are so many foreclosed properties out there is that the adjustable rate mortgages were pushed.

I have done short sale appraisals where the people have owned their home for 15 years and when they went to refinance to remodel the kitchen and bath they were talked into an adjustable rate and they could refinance down the road. Unfortunately prices dropped and there rates went up.We still have to understand that 90% of homeowner's are still paying there mortgages on time.

To end this on a positive note. The real estate market is cyclical and what goes down will eventually go up.