It's a very tough market out there for homebuyers in Las Vegas. Due to the introduction of AB 284 into Nevada, our housing market is being sent into a tailspin. Banks are now required to sign an affidavit saying that they can prove the trail of documents showing them as the current lien holder. They must do so before they can foreclose on a homeowner that has gone delinquent in making their monthly mortgage payment.
During the period of steep declines in home prices (2007 thru 2009), homebuyers could often win the bid on a home for prices below the 2002 levels. At this present time, this is not the case. Due to recent effects of AB 284 on our real estate market, the supply of homes has dwindled. Any real estate agent trying to find homes for their clients will tell you so.
Let's say that you and the seller have come to agreement on the purchase of a home at $200,000. You're feeling great, as it was a $500,000 home just six years ago. Your loan is approved contingent on an acceptable appraisal. You negotiated a deal that you felt was well deserving for the property. Should you now be worried about whether the appraisal will come in at $200,000?
Let's look at the motivations and duties of the appraiser. Appraisers are being much more careful in their valuations due to new & more stringent rules and scrutiny in the appraisers guidelines (HVCC). The appraiser knows what the purchase price is, and meeting that is all that is necessary to make the deal happen. Trying to meet the purchase price may add risk for the appraiser if the other comparable sales do not match it. Should you later default, the bank will have that higher value as a target for resale. Not getting it or close to it could cause concern for that appraisers license as we are all now tracked, including loan officers, on all transactions.
Our housing market is still in a vulnurable state. Unemployment concerns locally in Las Vegas and economic concerns globally will continue to effect real estate. The release of additional foreclosures on the horizon will also have a future impact on houses on the market now and being sold now.