Have You Recently Received An Appraisal That Came In Lower Than Expected?
By: Amanda Brooks, Vice President of Operations

There are several different factors that can contribute to an appraisal coming in lower than expected, such as the real estate market conditions, the data available, and the information you receive from the homeowner. The biggest problem currently is the real estate market itself. According to the National Association of Realtors (NAR), the median sales prices for home sales have fallen sharply year-over-year, for two straight months. In addition, these are the largest price drops in 38 years and the first back-to-back declines since 1995, as reported in the Wall Street Journal. While the sales of existing homes did post a tiny increase in October 2006, median home prices did continue to decline. Analysts forecast more price declines in coming months as the once-booming housing market undergoes a painful correction.

Here at Metro-West and World Appraisal our appraisers use the best available data. It's important to remember that Fannie Mae guidelines require us to use recent sales, preferably from within the past six months. Also, we are required to stay within the subjects immediate market area for all comparables whenever possible, and cannot ignore closer sales to achieve a higher value.

One thing to remember is that if the homeowners neighbors are selling their identical homes for $20,000 less than their asking prices, this will affect your clients value. If your client is refinancing, the appraiser will most likely use these similar, recent sales. We also use information from cities, townships, and villages as we collect information on the home. The SEV (State Equalized Value) is considered, but not necessarily used to determine the value of a home.

The last way to avoid value surprises is by asking the homeowners questions about their property. Our April 2004 Newsletter contains our list of recommended questions to go through with your client. While we do not complete value checks or pencil searches, we are always more than happy to help answer questions about how different circumstances may affect your clients value.

If you have any questions please contact us at marketing@metrowestappr.com

5 home trends we never saw coming

Some unusual items that more and more home buyers have on their wish lists. Plus: What's out.

By Les Christie, CNNMoney.com

NEW YORK (CNNMoney.com) -- Some of the latest trends in homebuilding and remodeling were not too hard to spot. Is anyone surprised that Americans, already living in monster homes, want even bigger ones? But there were some developments we never saw coming.

More Info Here

The foreclosure capital of the U.S.

By Melinda Fulmer, MSN Real Estate

Job cuts and risky loans get the blame in the Detroit area, where about one in 80 homes started the foreclosure process in the third quarter. The fire-sale prices are hurting other homeowners, too.

More Info Here

Joke of the Month:

Tom had this problem of getting up late in the morning and was always late for work. His boss was mad at him and threatened to fire him if he didn't do something about it. So Tom went to this doctor who gave him a pill and told him to take it before he went to bed. Tom slept well and in fact beat the alarm in the morning by almost two hours. He had a leisurely breakfast and drove cheerfully to work.

"Boss" he said, "The pill actually worked!"

"That's all fine" said the boss, "But where were you yesterday?"

www.ahajokes.com

Sudoku Puzzle:

Click here for Rules/Instructions

Click for answers to puzzle

Fun Facts:

How long, at the present rate of consumption, will U.S. current major energy reserves last?

Assuming 1986 production rates, U.S estimated energy reserves amount, to 32.5 years for oil, 58.7 years for gas, and 226 years for coal.

How much money can be saved by lowering the setting on a home furnace thermostat?

Tests have shown that a 5° F reduction in the home thermostat setting for approximately eight hours will save up to 10% in fuel costs.

How much energy is saved by raising the setting for a house air conditioner?

For every 1° F the inside temperature is increased, the energy needed for air conditioning is reduced by 3%. If all consumers raised the settings on their air conditioners by 6 ° F, for example, 190,000 barrels of oil could be saved each day.

"From The Handy Science Answer Book"

Riddles & Brainteasers:

If you throw a pumpkin in the air, what comes down?

Click here for the answer

www.brainteaser-world.com

What goes all over the world but doesn't move?

Click here for the answer

www.whatalulu.com

Recipe of the Month:

Shrimp Stacked Salad

Click here for the recipe

If you would like to submit your favorite recipe or if you are looking for something particular please email us at marketing@metrowestappr.com

This appraisal inspection looked like it would be similar all the rest. I parked the car and walked up to the door and was met by a curious longhaired cat in the window. When the homeowner let me into the house the cat immediately came over to me and started to rub its body on my legs so I bent over to pet it. The homeowner explained to me that she ran a day care and the kids playing in the house were not actually hers. Since all the kids were staring at me I said hello to them.

I then began asking the homeowner a series of questions about her home. The cat must not have liked us ignoring it, because it jumped onto the kitchen table that we were standing by. The homeowner did not even seem to notice the cat, she just kept telling me about her home and the updates they had done. While I listened to the homeowner I couldn't help but keep my eyes glued on the cat. I stuck my hand out to pet the cat again. I guess it wanted its belly rubbed because it proceeded to plop down on its back, at which time, its furry tail landed in the lit candle behind it. The cat's furry tale immediately went up in flames. I dropped my clipboard and camera and tried to grab the cat, but it took off running through the living room with its tail on fire and me chasing. The kids all found this very entertaining. I had pictures in my head of the house burning down all because I pet this hairy cat. By the time I caught the cat its tail was no longer burning. Luckily, the fire did not harm the cat, but its once bushy tail was now short and singed. I was afraid to turn around to see the expression on the homeowner's face. To my surprise, she was still listing off things they had done to update their home, while gently blowing out the candle.

Metro-West Appraisal Co., LLC

Please email us at marketing@metrowestappr.com

Your questions and our reply will appear in next months issue.

We have provided a quick, 3-question survey to be completed.

Your feedback is important to us to know how to better serve you.

Click here for survey

Please email us at marketing@metrowestappr.com

Your questions and our reply will appear in next months issue.

Visit us today at: www.metrowestappr.com

Visit our sister company World Appraisal at: www.worldappraisal.com

Metro-West & World Appraisal
We invite you to stop by and meet our staff!

Please come by our office, meet the employees and see how our operation works!
Metro-West & World Appraisal
27555 Executive Drive
Suite 180 & 185
Farmington Hills, MI 48331
For information or questions please email us at: marketing@metrowestappr.com

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"Don't limit yourself. Many people limit themselves to what they think they can do. You can go as far as your mind lets you. What you believe, remember, you can achieve."

~ Mary Kay Ash

To ensure that our appraisers are going above and beyond to service the homeowners, we have created a survey for the homeowners to either fill out online or call us to complete the survey. By completing the quick survey the homeowners name will be entered into a monthly drawing for a $100.00 dinner gift certificate to the restaurant of their choice.

Here at Metro-West & World Appraisal we are consistently striving for excellence to ensure that we are servicing our clients to our fullest capabilities. If you have any questions call us directly at 888-676-9237 and ask for either Renee' or Lisa.