AAC Blog

We do more than just appraisals for mortgage transactions.

Here is a list of some of our other services.

• Foreclosure Consultation
• Divorce Settlement Appraisals
• Loss Litigation Appraisals
• Tax Disputes
• Estate Planning
• Expert Witness
• PMI Insurance Removal
• Forensic Appraisals
• Fraud Review Appraisals
• Verification Services
• Market Appraisals for Realtors and Homeowners
• Consulting
• Property Management Services

If it has to do with Real Estate we can help and get you in the direction you need to be.

If you have good credit now is the time to buy or refinance.  Rates and home prices are low.  The market is flooded with some great bargains.  Do you homework, contact a professional Real Estate Agent, and always have your investment appraised by a professional Appraiser.

Look for an Appraiser that will give you an accurate valuation and not one that will just give you a figure to get the deal done. 

Below is a link to the HVCC which be implemented on May 1st, 2008.

It is not perfect but it is a good start in the battle to keep appraisers from being pressured by lenders, brokers, real estate agents, and etc. to hit numbers so they can turn loans.

The new HVCC that eventually stands on May 1st, 2008 will only be as good as the people who abide by it.  There will be companies who find loopholes and work around the intended purpose of the HVCC.  In the end, it will be up to the appraiser to stand up and say, "no" to the pressures and bad business practices.  If the appraisers had done this from day one, there would be no need for the HVCC. 

 HVCC Link

As the year comes to and end, I look back at all the changes that occurred this year.  What a year!  The housing market went down the drain and the stock market followed.  The good news, there is a lot of good rates out there for people with good credit.  In fact the rates are at a 50 year low.  If you have a credit score above a 720 contact your bank it could be worth your while to refinance.  The people with lower credit scores can also benefit.  The rates could be higher however it still could save you lots of money. 

Good Luck and Have a Great New Year!

I'm asked by a majority of my customers , "When will the housing market turn around?" 

If you watch any of the news programs, you realize there isn't an easy answer to that question?

We will start to see an increase in positive growth again when we see the following.

• A trend of falling unemployment rate.
• A trend of increased wages of the middle class.

Until these two things happen we will continue to see falling prices or at best stabilize at the current prices.  With the tightening of the credit markets there isn't enough people that qualify for loans to purchase the available homes on the market.  Without a steady increase in wages there isn't any growth in what a typical borrower can afford, so homeowners are not looking to upgrade to a larger home.

The turn around will happen once the layoffs level off and the market has absorbed all the default debt.

The good news is as of today the interest rates are at an all time low for people with good credit.  If you were thinking of buying your first home, investment property, or refinancing today would be a good time to do so.

If your a real estate investor now is the time to be purchasing your properties.  You have money available at low rates and the real estate is at an all time low.  Market rent trends are increasing. 

If your one of the homeowners that do not have great credit but have equity in your home and need to consolidate your debt it could be advantageous for you to contact a mortgage banker to see what is available.

For the rest of us it seems to be a sit and wait situation. 

Recently I've been running into more homeowners that have updated or built with the more energy efficient materials and systems available.  There is no question that it is better for the environment to use GEO thermal, tankless water heaters, solar energy, wind energy, toxic free materials, and so on.  However, the down side is that it will take years to realize any savings.  This savings could even take longer when an earth friendly system goes down and needs repaired.

Some of the homeowners realize that the benefit is mostly a good feeling knowing they are doing their part to help conserve resources.  Some on the other hand don't understand why they don't see a dollar for dollar return.  This makes for good discussions with the homeowners. 

One principle that comes to mind to explain this is the "Principle of Substitution", which states that a buyer will pay no more for a property than the cost of a property of an equally desirable alternative property.

One might argue that a "green house" is more desirable than a standard home.  This might be true in a few markets in the USA but for the majority of the markets in the USA the functional utility takes priority.  In most markets a green built 3 bedroom ranch with 2 baths and roughly 1,800 square feet will typically sell for just a small fraction above a standard built home.

If you have the money and want to be ahead of the curve then build the earth friendly home.  If your looking for a return then just use the typical materials used in your market.

The standard has already started to improve with insulation, windows, barriers, and such that it will only be a matter of time before the standard is the green built home.  So until then build green, live green and enjoy the fact that your ahead of the curve.

I am amazed at the number of appraiser who still mark stable or even increasing for the subjects market.  95% of the time when I use the neighborhood boundaries they indicate on the report, I can't duplicate their numbers.

There might be a fear that if they use accurate information they might upset their client or they might be afraid they will have to spend more time writing an explanation for the decline.  If it is because they just don't want to do the report then I would suggest to the to think twice before putting false information into a report because the chances are another appraiser will be reviewing their work for the lender.  If it is because they might upset their client then they need to find new clients.

The job of the appraiser is to provide accurate information in the report to show support for their conclusion. 

Have you ever wondered what a home improvement project would return in value?  In the November issue of Remodeling magazine they break down the numbers for you.  In fact they break down the United States into 9 sections.  They also break down the jobs from adding an attic bedroom to window replacement.  You can find out how to get that information by visiting their web address at www.remodeling.com.

Here are some national averages if you don't have the time to look up your specific region.

Project	Cost Recouped
Attic Bedroom	73.8%
Back Up Power Generator	57.2
Basement Remodel	72.9
Bathroom Addition	63.5
Bathroom Remodel	74.6

Deck Addition  (Wood)	81.8
Deck Addition (Composite)	73.7
Family Room Addition	65.9
Garage Addition	66.6
Kitchen Remodel	76.0
Master Suite Addition	66.0