The truth about real estate markets in McLean and Vienna

Submitted by: Katalin Cseke21

Finding McLean and Vienna Real Estate

Appraisals have become more and more important if you are looking to invest your money in the McLean real estate market. You and the appraisers are going to have to answer many questions in order to come up with an accurate answer. How is the health of the market? Where is the real estate heading? Is the marker worthy of your investment?

The crucial part of the entire process for the home buyer and the appraiser is to look at what is being bought and sold as part of the McLean real estate market and other Northern Virginia real estate market. Because we are living in an atmosphere of more foreclosures and a much tighter market, everyone in the process is taking a closer look at appraisals. How do we now find out what are homes are really worth, whether they are being appraised for purchase, a refinance or a home equity loan.

In a recent article in The Washington Post, the Northern Virginia market, including the Vienna real estate market, was reported on and the result was a place where prices are moving up and down greatly. If you want to be a part of it, you need to understand that there is a need for correct appraisals which will protect everyone in the process from getting into poor deals.

That's why real estate appraisers must come up with reliable answers when they are looking at a property. And why they also must take the current situation with the market into account when appraising a property.

One way an appraiser in Northern Virginia, and especially in the Vienna real estate market, will be able to know the true value is what is happening to the houses in a particular neighborhood. If there is an increase in foreclosures around a seller's home, than that property is going to be effected. If other sellers are slashing their prices, then the value of an existing property is going to decrease as well.

All of that makes appraisers sit at the head of a process that will eventually involve banks, loan underwriters, real estate agents and home buyers. During the housing boom, some appraisals weren't given as much scrutiny and inflated housing values actually helped home owners in need of a cash infusion by helping give more value to home equity loans.

"There is higher scrutiny because the market is going down," James Loizou, co-owner of Suburban Appraisers & Consultants in Fairfax, Virginia told the Washington Post.

If you are a potential buyer and you want to keep yourself safe, then you need to work with your lender to ensure that you are getting an accurate value. The loan underwriter is the company which is hiring and paying the appraiser, so they have as much state in the appraiser doing as good a job as you do. You want the appraiser to get out of the business of drive-by valuing.

Some lenders may begin the process of a loan with a automated valuation and then add detailed appraisals in order to approve the loan. Ask your lender if that's part of their process in the case of your purchase.

Last week, Virginia Governor Tim Kaine signed a law which makes mortgage settlement statements note any fee charged for an automated valuation or anything else done by someone other than a licensed appraiser. This protection will ensure that you are getting the best deal possible as a home buyer no matter which real estate market in Virginia you are investing in.