When an appraiser says to a Realtor, “Can you let me into the property,” that’s a sign that they don’t have a Supra and are not from the area. This seems to be a growing trend and problem facing our Houston real estate market as well as the national market. Houses are not appraising, which is driving down values in our neighborhoods, and even killing real estate transactions. This impacts people who are buying and selling real estate in the local market, as well as those who are relocating into or out of the Houston area as part of a corporate relocation.
Vicki Fullerton Speaks at John Daugherty, Realtors
Vicki Fullerton, Chairman of the Board for HAR (Houston Association of Realtors) came to our sales meeting this morning to address this very subject, and to tell us what we can do as Realtors to band together in hopes of reversing the HVCC (Home Valuation Code of Conduct). The HVCC establishes standards for solicitation, selection, compensation, conflicts of interest and appraiser independence. In a nutshell, it prevents Realtors and mortgage brokers from selecting appraisers.
The problem is that HVCC is having an adverse effect on the housing market. In a recent survey conducted by NAR (National Association of Realtors) in which 40,000 members were sent surveys, 3,600 sent in responses. Here are some of the highlights:
- Approximately 76% of Realtors representing buyers or sellers indicated that the time to obtain a completed appraisal increased after May 1. Among those indicating an increased appraisal time noted additional time to get to closing, with 69% saying it increased the time to close by more than 1 week.
- Lost sales due to delayed appraisals were reported by 37% of Realtors, with 16% reporting one lost sale and 20% reporting more than one lost sale.
- Both Realtors and NAR appraiser members reported a decrease in appraisal quality.
To read the entire NAR report, click on the following link: NAR Survey Shows HVCC Impacting Housing Market
So, what can we as Realtors do about it? According to Fullerton, “We need to get enough attention on this subject to the legislators to affect a change. We have to be smarter, work harder and be more knowledgeable. We have to know the ins and outs.”
One of the ways that we can help is to participate with an investment in TREPAC (Texas Real Estate Political Action Committee). TREPAC is the primary tool REALTORS and other real estate professionals in Texas use to elect officials who share our philiosophy of strong property rights and a strong and healthy business environment. According to Fullerton, we need to get involved in the political process, otherwise we are merely a mouthpiece.
Fullerton urged each of us to gather actual data on those transactions that have closed, but after a delay caused by the appraisal process, as well as transactions that didn’t close at all due to the appraisal regulations. This is extremely important with regards to relocation
At John Daugherty, Realtors, we are shooting for 100% participation in TREPAC investments. If you are a Texas Real Estate professional, we highly encourage you to do the same. That is the best way for us to fight for HVCC reform and other important issues affecting our profession. Let your voice be heard.
John A. Daugherty, Jr. & Vicki Fullerton
