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Appraisals Bogged Down by Foreclosures
By Stephen Roberts | January 29, 2010
Las Vegas is a very complex housing market when it comes to appraisals. The high percentage of foreclosures in the Henderson and Las Vegas housing market has driven home prices downward. Foreclosures accounted for 75 percent of Las Vegas home sales throughout much of 2009, reaching into every neighborhood and bringing down home values. Since appraisals are primarily based off of comparable home sales in the same neighborhood, they are coming up much lower than the agreed upon sale price in many cases. This often times causes a gap as large as $30,000 in financing for median priced homes.
There are some techniques and adjustments used by higher-level appraisers that can bring the appraisal closer to what the true market value of the home is. Many times people are looking for the cheapest and quickest appraisers to do the work, usually least experienced and least educated, creating a lower appraisal on the home. Prices have stabilized at around $120,000 – $125,000 in the past six months. Because of the high volume and high sales of foreclosed homes in the past year, the value of appraisals has dramatically dropped. This has created a problem for many buyers and sellers who have agreed on the sale price but cannot come up with the additional money not covered in the financing. We are hoping to see a change in the trend of appraisals soon, making it easier for people to buy and sell homes here in the Henderson and Las Vegas area.
For a list of things to consider when purchasing a foreclosure visit our website.
For all your Real Estate needs contact Steve Roberts at 702-739-4392 or visit my website at www.hendersonrealestateonline.com!
Topics: Henderson Nevada Homes, Las Vegas Nevada Real Estate, Mortgage Rates, Southern Nevada Monthly Economic Update, Summerlin Nevada Real Estate, foreclosures | No Comments »