Dallas Home Appraisals News and Information

The DMN reports this morning that "better-than-expected" profit report from Lowe's, optimism from homebuilders and positive reports from analysts about U.S. banks are responsible for the rise in stocks yesterday, portending a coming economic rebound.  A recent article at savingtoinvest.com reported last week that several signs are pointing to stabilization in the housing market and the real possibility that we've reached bottom.

At the same time, an article today from CNNMoney.com points out that along with low interest rates approval rates also remain low, with banks only approving about 60% of all loan apps.  That compares with a rate of 66% in 2005 and 79% in 2003. The decrease in approval rates is due in large part to stricter underwriting guidelines and the need for borrowers to provide more detailed information, not necessarily because borrowers today are less qualified.  Also contributing is the drop in values, making it tougher to refinance even for those who qualify credit-wise but their home values are too low.

Another report today from the DMN shows that homebuyers are overly optimistic as to the values of their homes, with realtors reporting that at least 56% of sellers believe their homes to be worth more than the recommended listing price.  And contrary to the positive feelings of analysts looking at current economic indicators, more than 50% of realtors surveyed believe the stimulus measures taken to date have not done anything to positively affect home values.

While some analysts continue to predict that we will see interest rates fall to 4.5% or lower, now remains an excellent time to buy if you can qualify.  If you are thinking of buying, be sure to pull you credit reports from the 3 main sources (Experian, TransUnion, and Equifax) to see what's on your report.  Remember, you are entitled by law to one free report from each company each year.  This will not include your score, but it will give you a chance to see if there are any errors or red flags on your reports.  Once you have that information and have pulled together as much other info as possible regarding your income, assets and liabilities, a good mortgage broker or lender can help you determine if you will qualify for the loan you are seeking.

If you are a seller, please consider investing in a pre-listing appraisal, especially if your realtor has indicated that you might be overvaluing your home.  Surveys show that buyers are less likely to make offers on homes that they believe are overvalued, even lowball offers, and more likely to focus on homes that seem to be within the range of current market value.

For help with pre-listing appraisals, or to contact a lender or broker, please contact us at Blue Star Appraisals Inc. for assistance with an appraisal or a referral to one of our trusted lending associates.