Maybe it’s the fact that there’s a giant piece of plywood sticking up 50 feet in the air next to the home you’re attempting to sell or get the “right value” on.
The home builders and real estate agents are complaining about appraisals being impacted by nearby bank-owned properties, but often these new developments are a big mix of foreclosed homes, new, never occupied homes, half-constructed homes, and giant plots of dirt.
If you look at the photo below, you’ll see what I’m getting at; on the same street you’ve got one potentially occupied or foreclosed finished home, a nearly finished home, and a skeleton of a home.
Next to those are empty dirt lots; how can you really get a good value on a street like that, especially when there’s a similar development another mile away?
Builders haven been pushing for big tax credits, low mortgage rates, and more, because they want to improve affordability without lowering prices to more suitable levels.
But now appraised values are getting in their way, which is why they want the HVCC moratorium in place, though it’s unclear if that will actually improve values much, as the banks and mortgage lenders seem to want appraisals on the low end anyways.