Good news for people that are looking to purchase a new house; home appraisals show that prices declined at a record pace around the nation in the final three months of 2008, according to an industry report released Tuesday. This is based, in part, on residential appraisals done by professionals in the field. In fact, many real estate appraisers in Valley Village, CA as well as real estate appraisers in North Hollywood, CA know this first hand. While this is bad news for our economy, it may be the one bright spot for people that have waited many years to get into the housing market. Even better is the fact that if these people can get a loan with the new plan for TARP funds, the economy will start to perk up. But, before your pour your hard-earned money into that new house, make sure you employ the services of a reputable real estate appraiser, because with thorough real estate appraisals, you can make sure you are buying a house for the fair market value.
I say this is good news because residential appraisals had been showing over-inflated prices for so long that potential home buyers were left out in the cold. If you look at what many home appraisals were going for over the past five years or so, you would wonder how anybody could afford to buy. Then again, we all know by now that most of those home owners couldn’t really afford those homes at all, and got into them through unfair lending practices and sheer greed. In fact, many of the real estate appraisers in Valley Village, CA as well as real estate appraisers in North Hollywood, CA were shocked to see comparables of surrounding homes go up and up while the condition of many of them were seriously lacking. That’s why having a professional real estate appraiser is so important, because they can tell you exactly what the range of prices are in any given market through real estate appraisals.
Now depending on how you look at it, the fact that real estate appraisals show that the decline in home prices does not seem to be slowing down it’s either a good thing or a bad thing. It’s a bad thing if you are trying to sell, because residential appraisals reflect the decline; however, it’s a good thing if you are looking to buy because you now may finally be able to afford a home of your own. One of the reasons for the falling home prices is that rising foreclosure activity is putting pressure on prices, as lenders are increasingly pursuing a ‘take what we can get’ selling strategy. Again, this is good news for people looking at home appraisals and seeing the real price of the homes they are trying to purchase.
Many experts predict that prices are going to continue to fall; they have to reflect economic reality. But that doesn’t mean you should hedge your bet and wait for the bottom. Sadly, many real estate appraisers in Valley Village along with some real estate appraisers in North Hollywood have seen many of their clients miss out because of this and lose their dream house to the next guy. Hiring a real estate appraiser to help you determine the fair price for a house is a first step. If you find that the house you want appraises for a price within your budget, you should grab it as fast as you can.