Appraisals are of great interest to both buyers and sellers in this market. The President of the Appraisal Institute noted: Appraisals are especially important because they are an objective and unbiased source of information.  Unlike others involved in real estate transactions, the appraiser is an independent professional who performs a service for a fee rather than for a commission.

Knowing that an appraisal can make or break a sale or a refinance, both sellers and buyers should use these tips when getting an appraisal:

• Understand the role of appraisals
• Make sure that your lender hires a qualified appraiser
• Accompany the appraiser or have your realtor accompany the appraiser during the inspection of the property
• Provide comps to the appraiser (or your realtor can do this) to be sure the appraiser understands the nuances of your neighborhood and can correctly evaluate recently sold properties
• Request a copy of the appraisal report from the lender
• Examine the appraisal report and ask questions
• Appeal the appraisal if necessary and appropriate

If you follow these tips, the appraisal can become a very important way to substantiate the value of your property.

Wells Fargo has agreed to modify the mortgages of nearly 15,000 California homeowners who are behind in their mortgage payments under a 2 billion dollar deal with State officials. Wells Fargo and the Californfia attorney general’s office announced the settlement in connection with “pick-a-pay” loans originated by Wachovia and Oakland-based World Savings. Wells Fargo inherited the loans with the World Savings loan portfolio when they bought Wachovia in 2008.

Under the “pick-a-pay” program, mortgage borrowers could pick the level of their monthly payment  during the early years of their loans. As the loans matured, their payments sometimes would reach levels that outpaced the ability of borrowers to make the monthly mortgage payment.

Under the settlement, Wells Fargo will offer affordable loan modifications to an estimated 15,000 California borrowers with pick-a-pay loans made by World Savings or Wachovia.

Many of the modifications will include significant principal forgiveness.  The total value of the modifications mandated by the settlement is projected to be more than $2 billion.

Wells Fargo officials said they hope that homeowners who receive letters from the bank inviting them to begin a loan modification process will contact the financial firm.

For the week of January 10, 2011, the median list price in Encinitas, California 92024 is $889,000.  The inventory of 177 properties have been on the market for an average of 159 days.

Inventory has been tightening and days-on-market increasing recently. The Market Action Index has been basically flat.

Home sales have been exceeding new inventory for several weeks. Since this is a Buyer’s market, prices are not yet moving higher as excess inventory is still being consumer. However, as the supply and demand trends continue, the market will move into the Seller’s zone, and there will likely be upward pressure on pricing. With several months of inventory available at the current sales rate, buyer should find ample choice.

Recently, prices in Encinitas have settled at a plateau even though they dipped a little this week.

This remains a very good time to buy in Encinitas. There is plenty of inventory to choose from, and sellers may be negotiable about price because of the large number of days on the market.

Call Marilyn Dashe at Sea Coast Exclusive Properties for a more specific breakdown of the Encinitas market.

The number of buyers who signed contracts to purchase homes dropped in June, as the weak economy and tight lending standards kept consumers away from the housing market.

The National Association of Realtors said Tuesday that its seasonally adjusted index of sales agreements for previously occupied homes dipper 2.6% to a reading of 75.7.

That was the lowest on records dating back to 2001 and down nearly 19% from the same month a year earlier. The index has fallen more than 40% from its peak in April, 2005.

High unemployment, weak job growth, and tight credit have hurt the housing market. Sales picked up in the spring when the government was offering tax credits of up to $8000. However, once the tax credits expired on April 30th, sales plunged.

There is a growing inventory of unsold homes on the market. It has risen to almost 4 million. That’s nearly a nine-month supply at the current sales pace. It compares with a healthy level of about six months. And that doesn’t include millions of foreclosed homes that have yet to go onto the market.

“There’s too much supply for the demand that’s there,” said Michael Feder, chief executive of Radar Logic, Inc, which tracks the housing market. “That’s not a dynamic in which values go up.”