I have been a Realtor almost a year now in one of the toughest real estate markets in history. It has been a challenge putting buyers and sellers together and making deals happen. But I have been doing well and my hard work is starting to pay off. I am busy, my phone is ringing, I am getting listings, receiving offers and then suddenly one of my deals falls through because of the new appraisal laws that have been implemented to prevent mortgage fraud. I can't believe that this new law meant to protect the general public is now back firing and people are losing out on the "American Dream" of home ownership. Not to mention all the hard work the professionals; seller's agents, buyer's agents and mortgage brokers are put into trying to get the deals to close.
Two months ago my sellers accepted an offer on their second home in North Port Florida. They were so excited that they were finally going to be able to move on and not have to maintain this second home of theirs and may be enjoy life a little with the proceeds from the sale. This was the buyers "first home" and they could not have been more excited. The buyers were already approved for financing (USDA Financing). They worked really hard to find the perfect home. The buyer's agent told me that over the course of several months she must have shown her buyers over 60 homes before they put an offer in on my seller's home.
Then the appraisal came in $15,000 short of the contract price. My sellers disappointed but agreed to lower the price to the value of the appraisal and the closing was scheduled. A few days before closing we were notified that the lender was not able to close in time. They just were too busy to get it together to close and so my sellers agreed to a 15 day extension. We are now a month and a half into this and 2 hours before the scheduled closing I am notified by the title company that the mortgage company is not ready to close again. The lender apparently pulled "AVM" comps 4 days prior to closing and the comps did not match the appraisal. The mortgage broker and buyer's agent both told me that they had 9 supporting comps and are going to resubmit to the lender for approval and to be patient. Based on this information my sellers again agreed to sign another extension for 10 more days.
This time, three days before closing we were notified that the lender won't close. The lender will not accept manual comps submitted by the mortgage broker. They will only accept the comps they received from the appraisal management company. These computerize appraisals are using distressed properties (short sales and bank owned properties) to determine their values. I have read that some of these appraisals are over 30% off on their values. This has been extremely difficult for all involved. The sellers want to sell their home, the buyers who have been working so hard to own their first home are devastated and all the professionals involved do not get paid.
The new rules meant to put a wall between mortgage lenders and appraisers are hurting home sales in Venice Real Estate Market and will single handedly cause our home values to drop like a rock. This is, and will be, contributing to many deals lost and is bringing down the market as a whole. All the efforts made by the government to spur the recovery of the housing market will be lost if something is not done soon.
Contact Kari A. Battaglia, licensed Realtor® in Venice Florida at 941-270-1851 to list your home, answer questions or to help you in your search for homes for sale in Venice Florida. I currently serve customers in Venice Florida, Englewood Florida, Nokomis Florida and Laurel Florida communities. I also have Tennessee properties available in the Chattanooga area. Call me to receive a list of Tennessee properties available for sale.
Contact me by email at Kari@DiscoverVeniceRealEstate.com. Need information fast, call me direct at 941-270-1851. Copyright©2009. By Kari A. Battaglia. All Rights Reserved.
Kari A. Battaglia, GRI - Realtor®, Broker Associate - Coldwell Banker Residential Real Estate - 331 W Venice Ave., Venice, FL 34285 - 941-270-1851 direct - 941-484-9715 - office 800-969-1990 toll free - Kari@KariBattaglia.com
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Helping buyers and sellers since 2004. A Venice/Englewood Florida resident for almost 40 years, put my local real estate knowledge to work for you today. My coverage areas include Southwest Florida include Venice, South Venice, North Venice, Nokomis, Osprey, Casey Key, Manasota Key, Englewood, Rotonda West, South Gulf Cove, Grove City, Placida, Cape Haze, Port Charlotte & North Port which are located in Sarasota and Charlotte Counties
I absolutely would love to discuss with you how I can assist you with your real estate needs. Remember I am never too busy for your referrals!