We have certainly seen the good news/bad news in our Corral Canyon micro market over the last 6 or so years. The bad news in the regional real estate market had been the low sales prices fueled by distressed sales. Our Canyon was not immune to this, though our source of distressed sales had a slightly different geneses; the fire rebuilds. Sadly, many of the homeowners attempting to rebuild did not complete the process for a myriad of reasons. This is why we saw some absolutely spectacular short sale and foreclosure deals on brand new builds and homes just short of having a certificate of occupancy or C of O (C of O is the final permit allowing a structure to be inhabited). So what is the good news for our canyon values and, most importantly for many, “when can I refinance”?
Now For the Good News!
Ok, so the good news is that as bad as things got, they were really not that bad. Markets undulate based on supply and demand and our canyon’s supply was incredibly low from 2008 to about the midpoint of last year. Low inventory was a stabilizing factor in an otherwise weak market. Since what was available was mostly made up of the distressed rebuilds, and most of that inventory is gone, we are now experiencing a boom in our market. We have some all time record sale prices and that, along with two large estates that were completed in 2007 and ’08, are helping to redefine our canyon. In both upper and lower Corral Canyon, we are seeing record asking prices and some record sale prices to support them. In case you have not noticed, our canyon is rapidly gaining upscale cache.
Don’t Like Your Appraisal? Be Proactive!
Have you heard of an Appraisal Rebuttal? This is a tool by which you can “argue” the value of your appraisal with the bank while in the process of a refinance or purchase. Keep an eye on the comps (here it comes, an unabashed plug for this site) and be sure to stay in the “Zone” for listing searches and monthly sales data. This way if you run into a low appraisal, you might be able to fight it with an Appraisal Rebuttal and have the appraised value raised.
I will do an article on appraisals in the near future and go into more detail, but just know that in a great many instances, appraisers do not know the inventory as well as they should. If you can support your home’s value with honest to goodness and recent closed sales in our canyon, or even a similar canyon (Latigo), then you have a great shot at having that appraisal value changed. The trick is being able to intelligently argue how your house is superior to the comps used by the appraiser and/or that the appraiser omitted comps that should have been used. Better appraisals through better comps will happen organically over time, but who knows how long these great low interest rates will last, so be proactive and try to refinance now if you can.
Stay in the Zone
Check in periodically and “Stay in the Zone” for your all important appraisal rebuttal tools, sales and other great information. You can also contact us for a referral to a banker who can help you with your refinancing or purchase needs