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2012-02-07 10:33:16
More Deals Falling Through

More Deals Falling Through

This report reflexs the real estate activity at Bear Lake as well as Utah.  

Appraisals coming in lower than the agreed-upon sales price continue to cause more real estate deals to be cancelled, recent surveys show. 

In December, a third of real estate professionals reported they had a real estate contract fall through, up from 9 percent a year earlier. 

The National Association of REALTORS®, along with other housing industry groups, point to low appraisals and rejected mortgage applications from a stringent lending environment as the main forces behind the high number of transaction cancellations in recent months. 

Too often, foreclosures sales — which tend to be sold at big discounts — are being weighted into valuations, experts argue. 

The National Association of Home Builders’ chairman Bob Nielsen has called the use of distressed and foreclosure sales in comparables in appraisals “inappropriate” and “needlessly driving down home prices.” 

Sixty percent of builders say they are seeing problems from appraisals coming in below their contract sales price. 

'This is not only unfair and unreasonable, but it perpetuates the cycle of declining home values, drives more home owners underwater, harms local economic activity and acts as an obstacle to the recovery of the housing market,' Nielsen said in a statement in December about  appraisals.

But the lending environment also needs to change for the housing market to recover and for fewer deals to stop falling through, housing experts say. 

'If we simply return to the normal credit standards, verifying income and looking at the creditworthiness of an individual to stay in a property long term, we think sales will be 15 percent to 20 percent above where they are,' NAR spokesman Walt Molony told Investor’s Business Daily. 'There are more people trying to buy homes than are succeeding today.' 

 
Blog Archive
2013-03-11 16:50:44
Discounts of Foreclosures - Recreation Realty

2013-01-29 14:21:11
January 2013 Newsletter - Paul Webb - Recreation R

2013-01-17 11:11:39
Justify the Sale Price of Your Cabin - Recreation

2013-01-17 11:07:02
2013 Housing Predictions - Recreation Realty

2013-01-03 12:04:44
Shadow Inventory Threat Wanes - Bear Lake Real Est

2012-12-14 16:13:21
Credit s for Lenders - Recreation Realty

2012-11-12 12:31:06
Cautious Optimistism in Real Estate - Recreation R

2012-11-07 12:24:41
Obama victory will affect Real Estate at Bear Lake

2012-09-07 11:58:06
Obama will protect the mortgage interest deduction

2012-08-31 13:35:52
Buyers Worried They're Losing Bargaining Power

2012-08-13 14:16:36
4 Reasons To Buy Now

2012-07-18 14:30:58
Inventory numbers are good news

2012-06-14 15:04:18
Another round of increased forclosure and short sa

2012-04-26 17:32:19
Increased activity and sales at Bear Lake

2012-04-24 15:03:41
Are Low Ball offers a thing of the past?

2012-04-02 16:58:37
Is a Forclosure Wave Coming this Summer?

2012-04-02 16:58:37
Is a Forclosure Wave Coming this Summer?

2012-03-23 12:30:56
Home price bottoming?

2012-03-16 13:32:09
Myths about Foreclosed homes

2012-03-12 20:18:54
Forclosure inventory is reducing

2012-03-07 12:15:04
Housing affordability at Record High....Very good

2012-03-06 13:14:58
Short Sale Questions and Answers

2012-02-13 13:17:33
Lender participation in recovery

2012-02-07 10:33:16
More Deals Falling Through

2012-01-13 11:27:18
Record low Mortgage rates

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Penilee 'Peni' Stevens
Broker / Realtor
435-757-3949
Kathleen Johnson
UT/ID Agent
435-213-0073
Heather Moldenhauer
UT/ID Agent
801-618-7990
Tonya Peterson
UT/ID Agent
435-757-8008
Mindy Nelson
UT Agent
435-760-9365
Joel Smith
ID Agent
208-851-0241
Charlotte
ID Agent
208-851-0241