My New Blog

What is it like for an appraiser in an extreme real estate market in which homes are being purchased and sold at a rapid pace and market data is being pulled ahead of time? When prices are rising almost or even more than 1% every month, market data will struggle to catch up. Historical comparable sales will show large differences between value and the price agreed upon. But, as an appraiser, we are bound to be cautious since we are accountable or shall I say responsible to the party whom is lending a good % of the agreed upon price for at least the next 5 years. Interest rates have risen from 2.5% to 3.5% so many view this as only a 1% increase but look at over the life of the loan and you will be amazed at what your really paying for a loan.