The Appraiser's gift of ignorance - thanks to the HVCC!

So, one of my clients bought his new home today! That is always a good thing. However, he was presented a 7,500 dollar gift from FHA (indirectly). See, FHA is now requiring that your lender must order the appraisal on your new home from a national appraisal "house". This "house" will select and assign an appraiser to appraise your home. The changes state that rather than going to an appraiser directly, lenders must order a real estate appraisal through a third party, such as an appraisal management company. This is to try and eliminate the Loan Officers from influencing the appraisers valuation results. Well, this appraisal "house" assigned an appraiser from well out of this homes location. The appraiser was not familiar with the community or it's respective values. Therefore he under valued the home (in my opinion) substantially. Because of the new appraised value the Sellers had no other choice than to lower his sale price to match the appraisal results (either that or not sell the home). While working with FHA transactions you only get one chance on an appraisal. You cannot go get another appraisal to override the first (even if you feel it is erroneous) for six months. My client saved $7500 dollars off the sales price and still got his Obama Stimulus Tax Bucks to 'boot! For a more detailed summary of the new FHA Appraisal guidelines I have found a wonderful (and boring) article. CLICK HERE FOR MORE on the new Home Valuation Code of Conduct.

INCREDIBLE TIMING

The expanded credit for first time homebuyers has certainly paid off for one of my clients today! He purchased a residence in Carmel for $85,000! No, it is not huge but it is in good condition and it is in a great location too! But the details are incredible along with the timing.

He is going to get an $8,000 dollar tax credit on his income tax return due this April! Now, this is dollar per dollar. So, if he owed $8,000 in 2008 and paid $8,000 throughout the year - he will get an $8,000 dollar return!! WOW!! Each transaction is so unique it is hard to tell you all the specifics. But, this is great timing. He bought low and is taking full advantage of the first time homebuyer credit. I have often heard the statement "where's my bailout" from everyday folks like me. However, I can say that I would not have sold the residence today without the stimulus package. I think I found my bailout! For more details on this FIRST TIME HOMEBUYER credit I have found a quick article from the US department of treasury I wanted to share with you.

Take my sofa PLEASE!!

Nice sofa... REALLY?!?

Throughout a typical day I might go and view anywhere from 3 to 4 homes that are for sale. As people prepare or stage their homes to get ready for my viewings I wonder what goes through their mind. My thought is that the furniture that is being displayed really has to have a purpose. You need to use the piece often or it has to add some sort of aesthetic beauty to your space. I wondered, does this piece really have a place or purpose?

I have a wonderful sleeper sofa dating back to the 1980's hiding in my basement right now! No, this is not a picture of my sofa. I found a great place that you can donate your furniture and they will pick it up for free! YEP! St. Vincent Depaul Society - 317-687-1006. They call themselves "friends of the poor". However, with this service I call them friends of the entire community! (I have also heard that the Salvation Army provides a similar service.)

Americans See 18% of Wealth Vanish - REALLY?

In a rash of further good news, S. Mitra Kalita with the Wall Street Journal helped bolster consumer confidence by breaking the "country is broke" story again. This breaking news was coupled with a heart wrenching story of a mom who had to tell her son he could not shop at Abercrombie & Fitch. Really?

Come on. We know already. We know.....

Now this has hit home -NO Abercrombie - this is the proverbial straw!

All joking aside - I marinate in this swell stew of pessimism every day. I'm tired and really need to let it out. Stop reporting the reported, let's proactively report optimisim. Let's try and focus our investments in solid value and quality backed products made in America . And finally, let's provide for and enjoy the blessings we've been given.

Buy a quality home with more land. Buy a home with Brick in a good location. More than anything lets take responsibility for our commitments and restore the American pride and will that we experienced briefly in 2001 and occasionally before each little league baseball game.