Now mind you we've been told  this has only happened in condo/loft section of town.... but it 's something to think about.

There evidently are three boxes on appraisals here in this part of the country that have just been sitting there and not being used. 

  •    Declining Market
  •    Over Supply
  •    Over 6 months marketing time

It's my understanding from yesterday's sales meeting that any of these three little boxes are checked by the Appraiser during the appraisal and the buyer was acquiring a conventional loan and was putting down 5%, upon the checking of one of these boxes the buyer will be required to put down 10% instead.

It is also my understanding that these boxes do not apply for FHA loans.

It's sounding more and more like FHA will be the way to go in 2008 in Kansas City Real Estate.  Also what's becoming more and more important is pricing your listings properly. (But that's another entire post)

Fran White
North Kansas City Real Estate
816-682-3897

 
This post has been included in Missouri Information

11 Comments on The 3 Ugly Boxes Are Being Implemented On Appraisals In Kansas City

Hey Fran, The three boxes of market death. They have been using these boxes in my area for about a year now. Lenders are actually very reluctant to lend in my area because the market is so bad. Can't say I blame them.

01/23/2008 11:28 AM by Bryant Tutas-Tutas Towne Realty, Inc

Those ugly boxes are starting to affect portions of the DC area, too.  We have a listing that will probably fit in a box and therefore have been extra careful accepting offers from 100% financing people.  One more reason, people need informed agents on their side.

01/23/2008 11:40 AM by Chelle Gassan-NOVA Realtor and Stager (Weichert, Realtors and Staged Homes VA)

Bryant and Chelle: Although they are the basic mark of death, I'm glad to see that they are being used elsewhere also.

01/23/2008 12:17 PM by Kansas City North Real Estate :: Fran White 816-682-3897 (North Kansas City Real Estate, Reece and Nichols Residential)

Fran we have have had very few appraisals come in with "Declining Market" checked and have not seen any with the other two boxes.  This is just one of the Fannie Mae and Freddie Mac changes that we have seen this year that are effecting the ability to obtain a Mortgage.  Around here points being added for Credit Scores under 680, and changes to Refinances are playing a bigger part for us.

01/23/2008 03:01 PM by George Souto (McCue Mortgage Co.)

Thanks George for commenting on your neck of the woods.

So in your professional opinion, do you feel that FHA will be the way to go in 2008?

01/23/2008 03:41 PM by Kansas City North Real Estate :: Fran White 816-682-3897 (North Kansas City Real Estate, Reece and Nichols Residential)

Fran all the recent changes have made FHA a much more attractive loan than it has been in recent years, and if the new proposed changes to FHA take place as expected, it will be one of the best loan programs out there in my opinion.

01/23/2008 09:13 PM by George Souto (McCue Mortgage Co.)

Fran all the recent changes have made FHA a much more attractive loan than it has been in recent years, and if the new proposed changes to FHA take place as expected, it will be one of the best loan programs out there in my opinion.

01/23/2008 09:13 PM by George Souto (McCue Mortgage Co.)

They are being used more and more - hopefully things will start to change soon. 

01/24/2008 08:52 AM by James Downing - REALTOR® - Washington DC Real Estate (Coldwell Banker Residential Brokerage)

George: I like attractive!

James: FHA's? or the ugly boxes? :)

Thanks for stopping by!

01/24/2008 10:11 AM by Kansas City North Real Estate :: Fran White 816-682-3897 (North Kansas City Real Estate, Reece and Nichols Residential)

The key for out of towners reading is that you said downtown lofts/codos....of which I've maintained have been overbuilt for quite some time. 

And yes, FHA is a great way to go.  More so than most people realize.

01/27/2008 10:58 PM by Chris Lengquist, RIPS (Keller Williams Realty)

That's the only place I have heard of the 3 Ugly Boxes being used at this point Chris and they can limit them to that area!

Thanks for stopping by. :) 

 

 

 

 

 

 

 

 

 

 

 

01/28/2008 07:47 AM by Kansas City North Real Estate :: Fran White 816-682-3897 (North Kansas City Real Estate, Reece and Nichols Residential)

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Real Estate Agent: Kansas City North Real Estate :: Fran White 816-682-3897 (North Kansas City Real Estate, Reece and Nichols Residential)
Kansas City North Real Estate :: Fran White 816-682-3897
Kansas City North, MO
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North Kansas City Real Estate, Reece and Nichols Residential

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