The lenders I am talking to want to appraise to determine if the house is in a declining market before

Asked by Jason Brown, Newport, RI Fri May 2, 2008

considering 100% financing. How can one determine if the market is declining in El Paso without actually appraising a specific house?

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7
Jackie Rankin, Agent, Fort Worth, TX
Fri May 2, 2008
I'm with Chris on this one. Lenders have a list of declining markets and they dont' need an appraiser to tell them which markets are declining. However, having said that, a realtor can tell you if certain areas are declining by simply comparing sales in the past 6 months to the previous 6 months. If there aren't very many sales in that area, then compare the sales from the past year to the previous year. It should give you a pretty good indication. Good luck!
3 votes
Jason Brown, Home Buyer, Newport, RI
Sat May 3, 2008
Thanks Mark, but I am not in financial difficulty...just not rich. I do not want to tie up otherwise liquid cash in a big down payment with current market conditions.
1 vote
Rick Snow, Agent, El Paso, TX
Sat May 3, 2008
An appraisal is a snapshot of what "that house" is worth on "that day". Like Barry, I would suggest you speak with a local lender that is in tune with the market in El Paso. Lenders here are just as concerned about value as anywhere else, but they know from seeing it on a daily basis, that the El Paso market is holding it's own. I have included a link to the Texas Real Estate Center Market Report for El Paso. Note that the housing data indicates a steady increase in home sales prices. As a member of the GEPAR MLS Board of directors I can also tell you that average home sale prices continues to climb every month. Jason, find a local lender. That doesn't mean it has to be a mom and pop mortgage broker, but steer clear of the online lenders with no local knowledge.
1 vote
Karch Team-…, Agent, El Paso, TX
Fri May 2, 2008
Hi Jason. I have never run into this before. I would be glad to recommend to you some local lenders to contact. By the way, the market in El Paso is very stable.
1 vote
Chris Tesch, Agent, College Station, TX
Fri May 2, 2008
Jason, it does seem as if they could determine this without the appraisal. I know certain lenders have lists of declining markets and will impose restrictions on loans in these areas. Have you tried a local lender? Certainly they should know if it is a declining market.
Good luck with your purchase!!!
Web Reference:  http://www.ChrisTesch.com
1 vote
Dallas Texas, Agent, Dallas, TN
Fri May 2, 2008
Hi Jason, you have a very valid question they would more than likely look at the overall sales for approx. 6 months to maybe up to a year, since limited number of homes sold vs. other major cities in the states. They would need to appraise your house to like homes, however if there are more foreclosures than occupied by owners the house would be comp'd to foreclosures (some) that can be below market value for the area. Which is possibly a good thing therefore you won't over pay for property.

EXAMPLE: We have a few communities in South Dallas new construction less than 5 years are almost the entire towns are foreclosures, I feel sorry for sellers that purchased during a huge decline in this area.

Hope that helps.
Web Reference:  http://www.lynn911.com
1 vote
Mark Wilton, Both Buyer And Seller, Buffalo, NY
Sat May 3, 2008
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