After hearing from an agent in Northern California that their appraisal guidelines had been changed, I called Robert Riede from the Appraisal Connection (310-768-8700) to get the latest on our appraisals here for Palos Verdes real estate.
Robert confirmed that lenders had really tightened their guidelines for appraisals with most lenders requiring at least 2 comps from the last 90 days. Some lenders are even requiring time adjustments for all comparables even those during the last 90 days. Typically these adjustments are 1/2 percent to 1 percent per month on the Peninsula. The lenders are being very conservative. In some cases they may even require 2 separate appraisals.
In my opinion, this impacts both buyers and sellers who may have to go back to the negotiating table if the lender requires that the comparables, in effect, be discounted. I look forward to the pendulum swing coming back to the center soon.
