|President's Pen by Greg Gerbers, HBA President|
BUILDERS: LIST YOUR SALES WITH THE MULTIPLE LISTING SERVICE
This month's President's Pen is focused on entering sales into the MLS System. While I understand that it’s an extra step to your process it truly does help out the industry. Several builders have mentioned frustration with new home and/or model home appraisals not being high enough. In some cases had we all have entered sales numbers, those specific cases may have had different outcomes.
Twenty-Six percent of builders are seeing signed sales contracts fall through the cracks because appraisals on their homes are coming in below the contract sales price, according to a nationwide survey conducted by NAHB. The survey showed that nearly 60% of the builders are reporting that inadequate appraisals are causing serious problems in the market, with the biggest problem being comparable of new single-family homes that are too often based on foreclosures and distressed sales.
Of those who are reporting appraisal problems, 54% said that the appraisal amount was actually less than the cost of building the home.
The HBA of Fort Wayne has been contacted by a number of local lenders asking us to please encourage our builders to list new sales on the MLS so that appraisers have comps.
I would be happy to get you in-touch with the right person if you are having issues in this area and I appreciate all you do for the building trades.
Let’s make 2015 a great year!