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August 13th, 2019 1:44 PM
According to Fannie Mae's chief economist, repeat home buyers are less likely to get more than one quote when shopping for a mortgage. First time buyers were more likely to shop which raised the overall average # of quotes obtained by home buyers to 2. Only a fraction of those who got only 1 quote expressed regret. It is obvious that mortgage shopping can be a complicated and time-consuming  endeavor because it means looking at several interrelated components, e.g., rates, fees, points and assumptions about how long the borrower will stay in the mortgage. Advertised quotes are often "teasers" while a true quote is based on variables that are unique to each home buyer and can be evaluated differently by each lender. Fannie Mae shows that consumers of all backgrounds lack knowledge about mortgage basics. Remember, competition  only works if consumers assess their options. Consumers should realize that one can save thousands of dollars by getting multiple mortgage quotes. Building their knowledge may motivate more home buyers to comparison shop. 

Posted in:General and tagged: mortgage/buyers/loan/
Posted by Richard Wayne Abatelli on August 13th, 2019 1:44 PMLeave a Comment

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July 31st, 2019 6:52 PM
There is an understandable appeal to buying a weekend or vacation home on the eastern end of Long Island with friends or family members. One look at the local or regional newspapers and/or online will indicate a considerable investment for such.
Co-owning maybe the only feasible path to ownership. After all. two(2) check books are better than one(1). Affordability is out of reach for many real estate properties on both the North and South Forks, so partnering up becomes an ideal solution. The increase in buying power can assist you in the purchase or it could equal; (a) more square footage in your home; (b) more amenities, exterior or interior of both; (c) larger site or (d) some of the above to all of the above*. If your looking to purchase real estate on the east end then it also makes sense to hire an a real estate appraiser. Our knowledge can assist you in making the right investment. 

* New York Times, July 26, 2019.

Posted by Richard Wayne Abatelli on July 31st, 2019 6:52 PMLeave a Comment

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Appraisers provide a service which is one of the hallmarks of a profession. However we produce a product, which is a component of one definition of a industry, the production of a product. So, real estate appraisers provide both a service as well as a product.
My opinion and the opinion of others is that real estate appraisal is a profession. Here's why, part of the definition of a profession requires the practitioner to master the knowledge of some department of learning or science. As a real estate appraiser there is a body of knowledge which I must learn, then master, to provide my service, competently.

Posted by Richard Wayne Abatelli on July 16th, 2019 11:11 AMLeave a Comment

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July 2nd, 2019 6:57 PM
We celebrate July 4th as a festive holiday. Typically bringing friends and relatives together for fun and relaxation. We notice all the flags in our hamlets, villages, towns and cities. Most realize its a national holiday but do they really understand the meaning of this day in history. Each and every day we listen to the cry's  of those who seek the freedom we have. Yes, July 4th, 1776, Independence Day gave each and every citizen of the United States freedom. Let us put aside our difference's and remember the costs many have borne and understand each and every day our freedom is in jeopardy.
Let us all be proud to be free and be an American.

Posted in:General
Posted by Richard Wayne Abatelli on July 2nd, 2019 6:57 PMLeave a Comment

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June 20th, 2019 11:51 AM
Today, June 30, 2019, the Subcommittee on Housing, Community Development and Insurance will hold a legislative meeting. No appraisers have been invited as witnesses. Appraiser's, those individuals with "boots on the ground" should be the one's questioned. Watering down the appraisal process without the "eyes and ears" of the industry, will not protect the taxpayers. Could this be the start of the next mortgage manipulation and fraud? 


Posted by Richard Wayne Abatelli on June 20th, 2019 11:51 AMLeave a Comment

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June 4th, 2019 8:14 AM
Latest reports indicate renters are more cost-burdened than homeowners, and that the cost to rent a single-family home has increased significantly, while the typical mortgage payment an costs associated are lower.
Over the past 13 years, rent has increased 36% while a typical mortgage payment has declined 4% over that period. Yes, the median price for a single family home has increased on the average of 5-6% over the past several years on the North Fork of Long Island, so purchasing still requires a considerable down payment. But, over the same 13 years, homeowners costs for their monthly mortgage payment and other owner expenses went down 10%(30% to 27%) versus the cost to rent which remained similar, around 46% of their monthly income.

Posted in:General and tagged: renters/homeowners/mortgage
Posted by Richard Wayne Abatelli on June 4th, 2019 8:14 AMLeave a Comment

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There are challenges especially when the subject property is in an extremely distressed state, limiting similar comparable sales. Identifying and supporting adjustments therefore can be difficult and it is not uncommon for the appraiser to apply larger then normal adjustments for the comparable sales location and condition since it is possible that the search goes beyond the normal neighborhood parameters. This is typically not an issue as long as the appraiser explains the rationale. But remember the appraiser must follow USPAP(Uniform Standards of Acceptable Appraisal Practice) guidelines and the methodology and opinion of value must be supported. Every time a distressed property is acquired and renovated it not only provides potential buyers an opportunity for improved housing, it often has other positive impacts, such as gentrification of the market, improving its value and marketability. Its a plus for the immediate neighborhood as well as the adjoining communities.

Posted by Richard Wayne Abatelli on May 22nd, 2019 9:51 AMLeave a Comment

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Looking for a fixer-upper so you can profit after renovating or improving the property? If so, let me tell you how most appraisers treat this unique assignment. First, they now have to deal with two(2) market values, the initial selling price then the expected value after repairs aka after-repair-value(ARV). Lending institutions or private funding require 2 sets of comparable sales and 2 sets of condition ratings in the assignment. He or she must not only review the clients budget but understand in their mind the investors finished product in order to estimate the ARV.....see Part II in my next blog! 

Posted by Richard Wayne Abatelli on May 13th, 2019 8:39 AMLeave a Comment

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May 8th, 2019 3:17 PM
According to CoreLogic,35% of metropolitan areas in the U.S. have an overvalued housing market as of March, 2019 and this includes the New York Tri-State area. Overvalued is one in which home prices are at least 10% above the long term, sustainable level. The cost of buying or renting in expensive markets puts a significant strain on most consumers said Frank Martell, CEO of CoreLogic. 
CoreLogic HPI"Home Price Index" is built on industry-leading public record servicing and securities real estate databases an incorporates 40+ years of repeat sales transactions for analyzing home price trends.

Posted in:Forecast
Posted by Richard Wayne Abatelli on May 8th, 2019 3:17 PMLeave a Comment

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April 29th, 2019 2:54 PM
So what is BRACKETING and how does it relate to this approach to value. When you select comparable's to adjust for difference with your subject property it is important to pick Higher and Lower variables or items like GLA, condition, views, site area and large exterior amenities thus placing the subject's variable towards the middle, so that the positive and negative adjustments will tend to cancel each other out. This also reduces the impact of using adjustment factors that are too high or low.
It is important to use reasonable adjustment factors but time spent on a comprehensive detailed support for every adjustment factor would probably increase the amount of time spent on the assignment and raise the appraisal fee to a point where clients simply wouldn't pay for an appraisal. 

Posted by Richard Wayne Abatelli on April 29th, 2019 2:54 PMLeave a Comment

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