It’s the end of summer and schools have started – It’s time to re-focus on the last quarter of the year. That is our usual plan in real estate and I was wondering if this year would be the same or different? Well the phones are ringing, buyers are out and sellers are preparing to get their houses on the market to take advantage of the end of year buying season. I have been in Colorado recently for an event at my listing in Crested Butte and they also report an increase in activity with buyers – thats good news! Interest rates have continued to stay low and, yes, there is money available as long as a buyer has cash to put down and good credit. Our only challenge is to get past the appraisal process in some areas – this has been a bit of a hiccup lately.
A bit about the latest appraisal process: The large banks are required to hire appraisers randomly. Realtors refer to this as “spinning the wheel” and wherever it lands is the appraiser that will be sent out to your property. If you live, or are buying, in a development that has all similar styles, sizes and prices then you are not as affected by the random appraisers because they are able to compare information easily. But the areas that I work in, such as the Park Cities, Uptown and Preston Hollow, have a mix of older homes, new homes, architecturally-unique homes with different special features – you get the picture. Well, when an appraiser comes to do an appraisal in an area that he/she is not familiar with, then it is very likely the property will not meet value. Some of the mortgage brokers have a smaller list of appraisers that they “spin the wheel” on and so the likelihood that you will get a local appraiser for your home are much greater.
Bottom line is that I feel very confident about our real estate market this fall and we need to keep in mind that it is important to make sure your agent has found good comps to justify your price and/or has gotten an previous appraisal on your home.