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Lending Institutions are becoming very Conservative with Appraisals

Posted at Great Northeast Queens News by John Maniec

Jan. 25, 2008

Categorized in: Important NY Real Estate News

Tagged with: declining property values, lower appraisals, national median home prices fall

In a January 24, 2008 online article published in Newsday.com, its writer, Ellen Yan reported that many lending institutions are taking a more conservative approach with the appraisals submitted to them for funding. Since they expect property values to continue to decline for the foreseeable future, they will discount those appraisal amounts by another five per cent. For example, if the appraisal comes in at $ 400,000, they will lend based on a property value of $ 380,000.

To read the entire article, go online to www.Newsday.Com for January 24, 2008 with the title, "How does Long Island Real Estate Compare?"

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1. RE: Lending Institutions are becoming very Conservative with Appraisals

Written by: Sandra Scott

Apr. 9, 2008

We are seeing the same here in Payson, AZ. It seems that every appraisal I have gotten in the last 7 months has come in at near sales price, but then has been submitted by the lender's for second opinion within just a few days of closing escrow. Sometimes they don't even get final approval back until after the contractural closing date. It has become a real problem. However, sence we are a second home marke and spring has brought a new crop of buyers trying to escape the Phoenix heat, prices are holding. So, I'm hoping this problem will disappear as our local market recovers from the sales slump in late fall of 2007.

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