Comments on: What’s an HVCC and How does it Affect the Real Estate Market? http://www.realcentralva.com/2009/06/08/whats-an-hvcc-and-how-does-it-affect-the-real-estate-market/ Tracking Charlottesville's Real Estate Market since 2005 Thu, 18 Mar 2010 20:30:38 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Jim Duncan and Keith Davis Talk Charlottesville Real Estate http://www.realcentralva.com/2009/06/08/whats-an-hvcc-and-how-does-it-affect-the-real-estate-market/comment-page-1/#comment-27226 Jim Duncan and Keith Davis Talk Charlottesville Real Estate Thu, 23 Jul 2009 14:26:50 +0000 http://www.realcentralva.com/?p=4411#comment-27226 [...] Nest Realty’s Jim Duncan and Keith Davis joined Coy Barefoot on Charlottesville Right Now to talk about the state of the local real estate market.  They covered everything from home sales to the struggles with condominiums to the HVCC.  [...] [...] Nest Realty’s Jim Duncan and Keith Davis joined Coy Barefoot on Charlottesville Right Now to talk about the state of the local real estate market.  They covered everything from home sales to the struggles with condominiums to the HVCC.  [...]

]]> By: Charlottesville Market Report – First Half 2009 http://www.realcentralva.com/2009/06/08/whats-an-hvcc-and-how-does-it-affect-the-real-estate-market/comment-page-1/#comment-27163 Charlottesville Market Report – First Half 2009 Mon, 13 Jul 2009 05:06:49 +0000 http://www.realcentralva.com/?p=4411#comment-27163 [...] Appraisals – the HVCC and the lack of good volume of transactions is holding back the market. More to come on this, and [...] [...] Appraisals – the HVCC and the lack of good volume of transactions is holding back the market. More to come on this, and [...]

]]> By: Doug Francis http://www.realcentralva.com/2009/06/08/whats-an-hvcc-and-how-does-it-affect-the-real-estate-market/comment-page-1/#comment-26855 Doug Francis Mon, 08 Jun 2009 21:20:38 +0000 http://www.realcentralva.com/?p=4411#comment-26855 I have found that agents and loan officers are afraid to rock the boat... and appraisers fear even the slightest appearance of being "influenced" in any way. Appraisers have ignored good comps and information about updates like new windows or HVAC systems. These things do add value! To me, they urgently need to finish creating the "Independent Valuation Protection Institute" to address the realities of the situation. I have found that agents and loan officers are afraid to rock the boat… and appraisers fear even the slightest appearance of being “influenced” in any way. Appraisers have ignored good comps and information about updates like new windows or HVAC systems. These things do add value!

To me, they urgently need to finish creating the “Independent Valuation Protection Institute” to address the realities of the situation.

]]> By: Kris Berg http://www.realcentralva.com/2009/06/08/whats-an-hvcc-and-how-does-it-affect-the-real-estate-market/comment-page-1/#comment-26854 Kris Berg Mon, 08 Jun 2009 17:48:02 +0000 http://www.realcentralva.com/?p=4411#comment-26854 Here's another fun story. I had a home fall out of escrow (that's not the fun part). We immediately found another buyer, consequently we have two appraisals prepared by two appraisers within one week of each other. The first appraisal came in at price, the second came in $40,000 over, the higher of the two from a gentleman who was new to the neighborhood. Same home, same market, same purchase price. Negligence/incompetence can cut both ways. Here’s another fun story. I had a home fall out of escrow (that’s not the fun part). We immediately found another buyer, consequently we have two appraisals prepared by two appraisers within one week of each other. The first appraisal came in at price, the second came in $40,000 over, the higher of the two from a gentleman who was new to the neighborhood. Same home, same market, same purchase price. Negligence/incompetence can cut both ways.

]]> By: Jim Duncan http://www.realcentralva.com/2009/06/08/whats-an-hvcc-and-how-does-it-affect-the-real-estate-market/comment-page-1/#comment-26853 Jim Duncan Mon, 08 Jun 2009 15:42:45 +0000 http://www.realcentralva.com/?p=4411#comment-26853 Jason - Absolutely. I have experienced a couple incidents this year where the appraiser was grossly negligent - using comps from completely incomparable areas - which clearly demonstrated their lack of understanding of the market. In one case, the appraiser refused to correct the mistakes, the contract fell apart, and the house sold (to the *backup* offer) for the amount we had agreed upon. HVCC's intent may be good, but its implementation is a complete disservice to those it is seeking to protect - the consumer. Jason –

Absolutely. I have experienced a couple incidents this year where the appraiser was grossly negligent – using comps from completely incomparable areas – which clearly demonstrated their lack of understanding of the market. In one case, the appraiser refused to correct the mistakes, the contract fell apart, and the house sold (to the *backup* offer) for the amount we had agreed upon.

HVCC’s intent may be good, but its implementation is a complete disservice to those it is seeking to protect – the consumer.

]]> By: Jason http://www.realcentralva.com/2009/06/08/whats-an-hvcc-and-how-does-it-affect-the-real-estate-market/comment-page-1/#comment-26852 Jason Mon, 08 Jun 2009 15:34:11 +0000 http://www.realcentralva.com/?p=4411#comment-26852 The article regarding the HVCC is an interesting one. The author is obviously, and understandably, frustrated about the new appraisal process. The real content of the post is towards the end of it where there seems be more of an explanation of the HVCC and some of the nasty unintended consequences. We, too, are experiencing problems with the implementation of the HVCC. Many of the contracted appraisers are coming in from out of area. And while that might sound good for objectivity purposes, it’s creating havoc with appraisal values. So far we’re seeing more and more out of area appraisers coming back with values much lower than expected (particularly for refinances), which in some cases makes refinancing impossible. I don’t know what the solution is to maintaining appraiser independence, but I’m believing more and more every day that the HVCC isn’t it. The article regarding the HVCC is an interesting one. The author is obviously, and understandably, frustrated about the new appraisal process.
The real content of the post is towards the end of it where there seems be more of an explanation of the HVCC and some of the nasty unintended consequences.

We, too, are experiencing problems with the implementation of the HVCC. Many of the contracted appraisers are coming in from out of area. And while that might sound good for objectivity purposes, it’s creating havoc with appraisal values. So far we’re seeing more and more out of area appraisers coming back with values much lower than expected (particularly for refinances), which in some cases makes refinancing impossible.

I don’t know what the solution is to maintaining appraiser independence, but I’m believing more and more every day that the HVCC isn’t it.

]]> By: Mark Madsen http://www.realcentralva.com/2009/06/08/whats-an-hvcc-and-how-does-it-affect-the-real-estate-market/comment-page-1/#comment-26851 Mark Madsen Mon, 08 Jun 2009 14:07:01 +0000 http://www.realcentralva.com/?p=4411#comment-26851 Thanks for the mention, Jim. Loan officers need to know good agents as well, that is part of our job. :) Thanks for the mention, Jim. Loan officers need to know good agents as well, that is part of our job. :)

]]>