This Week in Colorado Real Estate, Week of 9/26/16
Real estate is one of those industries where you can see it all. We are all well-prepared to write a book about the stories we see and most agents will gladly share their stories and philosophies on human nature. My new blog theme will cover these stories and also tip and tricks for what we see in the current real estate market. Real estate is a fast moving market and staying current is oftentimes what gets your offer accepted or rejected as the case may be. This week the chapter is about Appraisals.
Currently appraisals are having a big impact on real estate in Metro Denver to say the very least. According to the Denver Post appraising is tough industry to enter so they are having a shortage of appraisers and the ones that in the industry just simply can’t keep up with demand.
The combo of too few appraisers (low supply) and low rates for re-finances and still a seller’s market (high demand), appraisals are taking about 3 weeks to complete. Three weeks is a tremendous drag on a contract that needs a loan.
Cash offers are trouncing on conventional offers because of this longer lead time and conventional offers are beating out VA and FHA offers because the appraisals for these two types of loans are even more involved and have wider implications.
Strategies to overcome this current obstacle for buyers:
- Make sure your appraisal is ordered the day you go under contract. There is no time to wait and make sure you get through inspection—cancel the appraisal later if needed but do not wait to order it.
- Ask your lender how long their appraisals are taking and how many days they need for closing. Having a 30 day closing period right now with a loan makes your offer stand out because most are running longer. This will give you a competitive edge. Ask us for names of lenders that can provide this.
Good luck and call us for more strategies—we are happy to share and help you navigate this ever-changing market.