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Housing Values


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Housing Values

  1. 1. Housing Values Are Banks Controlling them?
  2. 2. Mr. Seller’s house Just wants to sell his house
  3. 3. Mr. Seller thinks His house is worth this
  4. 4. Mrs. Buyer thinks Mr. Seller’s house is worth this
  5. 5. The bank thinks it’s worth this
  6. 6. Appraised value
  7. 7. Banks and Appraisers <ul><li>Real estate brokers could, up until a few years ago, help appraise homes through competitive market analysis </li></ul><ul><li>We could actually talk to the appraiser and make sure they saw all the improvements </li></ul><ul><li>RESPA, change of March 2008, changed all of that-Real Estate Settlement Procedures Act </li></ul><ul><li>Banks can’t pick appraisers nor can brokers talk to them </li></ul>
  8. 8. Bank Owned Seller Owned Sold for $259,000 in 2010 Sold for $319,000 in 2008
  9. 9. How Appraisals are Done <ul><li>Someone wants to sell, buy, or refinance a house </li></ul><ul><li>The lending institution requests an appraisal </li></ul><ul><li>The appraiser looks at closed sale prices for like size houses </li></ul><ul><li>The majority of house sells now are short sales, which banks have to OK the price, or bank owned properties </li></ul><ul><li>Both short sales and bank owned properties are all below what would be a normal selling price </li></ul><ul><li>Housing values are driven by short sales and bank owned properties </li></ul>
  10. 10. Banks are driving home values because they control what their houses sell for, whether a short sale or banked owned.