Appraisals In Slowing Market: Ken Harney, Seattle Times 9/15

Bill and DianaBuying Concerns, Financing, News, Seattle Times Articles, Selling Concerns 1 Comment

There are a couple of nuggets to be gleaned from reading Ken Harney’s article about appraisals. (1) good appraisers work to get the right numbers by calling agents to find out if concessions were paid by the Seller and ; (2) insight into the list/re-list game played by some agents in a slowing market. Fortunately, the Northwest Multiple Listing Service provides historical data on just about every listing submitted i.e., there is no escaping the fact that a property may have been re-listed multiple times to avoid the stigma of price reductions. Agents have access on-line, for every listing, via the “Property History”  button. It reveals a chronology of every change a property has been through, including changes of agents and brokers, price, listing data, status, etc.

If you’re curious about the sales history of a particular piece of property, listed or not, ask your agent. He/She will be glad to assist you, and it takes just few minutes. Just be certain to have the complete address. It can be frustrating working with incomplete or incorrect information.

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Comments 1

  1. Bill……I do not know of that problem yet in the greater King county market. It does bring back to the end of 1990 when prices started to fall after the great surge in 1989 from the Californian’s coming North. I remember 10 to 15 percent discounts on the plateau and suburbs. It did not last long how ever and has generally been climbing ever since. Appraisers do have to be careful as we are riding the horse backwards looking behind at closed sales up to 6 months ago. It makes out jobs tougher as we must analyze current pendings, listings etc.. and be careful to back out excessive closing costs. I am still having trouble in many areas ( good locations ) appraising properties with multiple offers. It seems the further out you get from primary shopping, employment etc…homes are being discounted. Which brings us back to principles 101..LOCATION, LOCATION, LOCATION…I believe if homes are priced properly and based on closed sales not inflation adjustments that the general Northwest market should be good without much discounting. Especially in the good locations mentioned earlier. There are so many positive indicators in the Northwest from the tech industry increasing in size to Boeing having record sales and the many vendors tied to all. I see a good future especially in the greater King county market.

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