RealTown's RealTalk

The National Association of Realtors (NAR) recently put out a survey to members asking what impact, if any, the new Home Valuation Code of Conduct (HVCC) has has on the real estate business.

Here is the result:

• 75% of Realtors representing buyers or sellers said that the time to obtain a completed appraisal increased after May 1st (when HVCC took effect). 69% reported an increase of over 8 days.
• Lost sales were reported by 37% of Realtors trying to get a sale to closing with 20% reporting more than 1 lost sale.
• Reports of lost sales will impact teh fallout rate in pending home sales although some of these sales may be completed after a delay of who knows how long.
• Increased use of out of area appraisers was reported by 70% of Realtors trying to complete a sale.
• NAR appraiser members say they now obtain over 50% of their appraisal management companies (AMC).
• Around half of NAR appraiser members say their fees have been reduced by AMCs. 70% says consumers are now paying higher fees. Of course the AMCs are getting the difference.
• 85% of NAR appraiser members reported a perceived reduction in appraisal quality!
• NAR appraiser members reported that a 'significant' number of their assignments were in unfamiliar areas. 16% said that 11% of their assignments were in unfamiliar areas.