Real Estate Information Archive


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Appraisal for Property Values: Time is of the essence

by Darrell Isaacs Team Professionals

Good Morning!

Last Thursday while attending an early morning meeting, I had the opportunity to hear my friend Zenet Negron, from First Priority Financial speak about how changes in appraisal policies and a declining market have impacted those ‘borderline’ borrower’s ability to refinance into a superior loan product.  So I asked Zenet if we could chat about this in today’s blog

DRI: Zenet, thank you for the time to chat and inform the public by means of my blog.  There are recent changes in appraisal law that were designed to give the public more protection through the loan process.  Have you already seen impact due to these changes?

Zenet: The appraisal process is pivotal to closing your loan.  As of Feb. 15, 2010, FHA loans are required to use an Appraisal Management Company (AMC) when ordering appraisals. Conventional loans adopted this practice in the latter part of 2009.

The process is now taking longer, which can cost the consumer more to complete a loan.  We have seen appraisals “come in” both under and over the current market values. In most cases out of area appraisers are being assigned by the AMC; hence, they are not entirely familiar with certain areas.

With every appraisal, the underwriter will review the appraisal report and establish a recommendation of value. It is not unusual for them to request a second appraisal. This long process is prohibiting some transactions from a timely closing.

DRI: Have you had someone actually impacted by this new policy?

Zenet: This past week, my refi-client had three comparable properties close escrow as their appraisal was being done. They were the ‘freshest’ and the rules require newer rather than older data be used.  Each comparable property had lower values which effectively reduced their home’s value and they were unable to refinance. So, the delay in process allowed closings occurring in a declining market to drive the new value out of range

DRI: This does not seem likely to be a ‘one time’ event.  What are you telling your clients?

Zenet: Timing is essential. If you're considering refinancing your home, it may be best to not postpone your decision and move forward. If you're purchasing, make sure to contact a reputable real estate professional that can properly negotiate your purchase price and that they are capable to renegotiate the purchase price in case the appraised value is lowered.

DRI: I know we have tossed out a significant coveration and lightly touched it.  I hope you will feel like taking this a bit deeper in a future blog.  Any interest?

Zenet: Absolutely.  I know we both work from a core value that our clients should be the most educated and well prepared in the marketplace to ensure their chance of success.  I would be glad to help.

DRI: Zenet, again, thanks for taking the time.  We all look forward to that day.



Let The Countdown Begin

by Darrell Isaacs Team Professionals

On Tuesday, February 9th, STAR POWER’s Alex Charfen and his team will in town, in fact, they will be at our office.  All for the express purpose of interviewing me and the Team and making it our official induction as a STAR. 

This is quite an honor, one I privately wished for but just didn’t see it in the cards.  However, Howard Brinton made that all change by selecting me for this honor just prior to his turning the reigns over to Alex. 

I have had a blast attending more than 12 STAR POWER conventions where I was free to grab, borrow and tweak ideas, from thousands presented, that allowed me to drive our business to record levels.  Those and other strategic ideas, clarified by our commitment to the Team motto:  Integrity… Knowledge… Success, coupled with applied energy and focus to succeed for our clients, has allowed our sales to soar to figures that at times are hard to conceive.  A statement backed by the NAR.

Per the National Association of Realtors data the average agent sold 3.98 homes in the year 2008.  We were blessed to assist 576 families in getting into their new home during that same time period.  In fact, since 2006 we have successfully closed over 1600 home sales.  Something I could never do without the support of a great Team, and that I have!

So, allow me this brief moment to sit in the sunshine, and I will be back to work on Monday morning.  After all, it will be a new day.  And if you’re an agent looking to take your business to the next level, you cannot do better than joining the STAR POWER team.



Displaying blog entries 1-2 of 2




Contact Information

Photo of Darrell R. Isaacs, CRB CRS Real Estate
Darrell R. Isaacs, CRB CRS
Genesis Real Estate Group
149 W Yokuts
Stockton CA 95207
Phone: 209 957-2929
Fax: 209 244-7171

   Genesis Real Estate Group     Darrell Isaacs Team Professionals
   BRE License # 01874804        BRE License #00556614