Standard & Poor’s released its September 2011 Case-Shiller Index this week. The index tracks home price changes in select cities between months, quarters, and years.
The Case-Shiller Index for September showed drastic devaluations nationwide.
As compared to August, home values fell throughout 17 of the index’s 20 tracked markets, led by Atlanta’s 5.9% drop. On an annual basis, home values have now returned to early-2003 levels.
That said, home buyers and sellers in the Indian Hill area should be cautious when referencing the Case-Shiller Index. The index is a flawed metric and, as such, can lead to improper conclusions about the housing market overall.
The Case-Shiller Index’s first flaw is its most obvious — its limited sample set.
According to Wikipedia, there are more than 3,100 municipalities nationwide. Yet, the Case-Shiller Index includes data from just 20 of them in its findings. These 20 cities account for fewer than 1% of all U.S. cities, and just a small percentage of the overall U.S. population.
The “national figures” aren’t really national, in other words.
Even on a city-by-city basis, the Case-Shiller Index gets it wrong.
By lumping disparate neighborhoods into a single, city-wide result, the index ignores the relative strength of one area at the expense of another. In the aforementioned Atlanta, there are areas that fared much better than September’s -5.9% as cited by Case-Shiller. Some areas fared much worse.
A second flaw in the Case-Shiller Index is it’s methodology for measuring changes in home value. The index only considers “repeat sales” of the same home in its findings, and those homes must be single-family, detached property. Condominiums, multi-family homes, and new construction are not included.
In some cities — Chicago, for example — “excluded” property types can account for a large percentage of total monthly sales.
And, third, the Case-Shiller Index is flawed by “age”.
Because Standard & Poor’s publishes on a 60-day delay, the Case-Shiller Index is reporting on a housing that no longer exists. Sales that closed in September are based on contracts written from June-August –a time-frame that’s 6 months aged.
The best use of the Case-Shiller Index is as an analysis tool for economists and policy-makers interested in the long-term trends of U.S. housing. The index does very little good for every day buyers and sellers, unfortunately.
For up-to-date, accurate market data, talk to a real estate professional instead.
If you plan to buy of new construction in Ohio sometime in 2012, don’t expect today’s low prices. Like everything in housing of late, the market for newly-built homes appears to be stabilizing and, in some markets, improving.
As foreshadowed by this month’s strong Homebuilder Confidence survey, the Census Bureau reports that the number of new homes sold rose to a 6-month high in October, climbing to 307,000 units on a seasonally-adjusted, annualized basis.
A “new home” is a home that is considered new construction. It’s the opposite of an “existing home”.
Home buyers are comparing new construction to home resales and liking what they see. At the current sales pace, the nation’s complete new home inventory would now be depleted in just 6.3 months. This marks the lowest home supply since April 2010 — the last month of the last year’s federal homebuyer tax credit.
By building only to meet new demand, builders are keeping home supplies in check, and home prices stable. They’ve also found a niche market – 80% of homes sold last month sold for less than $300,000.
Split by region, the Census Bureau reports October’s New Home Sales as follows :
Northeast Region : +0.0% from September 2011
Midwest Region : +22.2% from September 2011
South Region : -9.5% from September 2011
West Region : -14.9% from September 2011
Unfortunately, the data may be incorrect.
Although the October New Home Sales report says that sales climbed 1.3 percent last month, the government’s data was published with a ±19.7% margin of error. This means that the actual New Home Sales reading may have been as high as +21.0 percent, or as low as -18.4 percent. Because the range of values includes both positive and negative values, the Census Bureau assigned its October data “zero confidence”.
As home buyers, then, we can’t take our market cues from the published data. Instead, we should look to other metrics including Housing Starts data and the aforementioned homebuilder confidence survey. Each points to strength in the new home market, and foretells higher home prices in 2012.
If you’re in the market for new construction, consider writing an offer soon. Home prices remain low and mortgage rates do, too — a combination that keeps home payments low. Next year, that may not be the case.
Home improvement projects are booming, expected to cross $110 billion in total volume this quarter. Unlike in recent years, however, the projects aren’t helping to create much new home equity.
According to Remodeling Magazine’s Cost vs Value Report 2011-2012, for each home improvement dollar spent in 2012, homeowners can expect to recoup just 58 cents in home equity.
This figure is down sharply from 2005, when the cost-to-value ratio was 87 percent.
Today’s Cincinnati homeowners get a much smaller payoff on their home improvement projects. If you’re planning to remodel/update in preparation for sale, therefore, consider the following projects, each of which carries a high cost-to-value ratio.
From Remodeling Magazine’s “Mid-Range Project” list :
Steel Entry Door Replacement : Cost, $1,238; Recoup, 73.0%
Attic Bedroom : Cost, $50,184; Recoup, 72.5%
Minor Kitchen Remodel : Cost, $19,588; Recoup, 72.1%
Garage Door Replacement : Cost, $1,512; Recoup, 71.9%
Wood Deck Addition : Cost, $10,350; Recoup 70.1%
By contrast, other projects carry a low cost-to-value ratio, and should only be undertaken if the project’s utility exceeds its cost. These projects don’t do much to raise a home’s resale value.
Home Office Remodel : Cost, $27,963; Recoup, 42.9%
Sunroom Addition : Cost, $34,133; Recoup, 45.9%
Backup Power Generator : Cost, $14,760; Recoup, 47.5%
Fiberglass Entry Door Replacement : Cost, $3,536; Recoup 56.3%
In the “Upscale Projects” category, projects including the replacement of doors, siding and windows occupy the list’s first 6 slots in terms of cost-to-value.
If you’re planning a home improvement project over the next few months, the timing is right — both contractor costs and material costs are low nationwide, and improving a home can extend its useful life.
A conforming mortgage is one that, literally, conforms to the mortgage guidelines as set forth by Fannie Mae and Freddie Mac.
Conforming mortgage guidelines are Fannie’s and Freddie’s eligibility standards; an underwriter’s series of check-boxes to determine whether a given loan should be approved.
Among the many traits of a conforming mortgage is “loan size”.
Each year, the government re-assesses its maximum allowable loan size based on “typical” housing costs nationwide. Loans that fall at, or below, this amount meet conforming mortgage guidelines. Loans in excess of this limit are known as “jumbo” loans.
Between 1980 and 2006, as home values increased, conforming loan limits did, too, rising from $93,750 to $417,000. Since 2006, however, despite falling home prices in many U.S. markets, the conforming loan limit has held steady. This will remain true for 2012 as well.
In 2012, for the 7th straight year, the national, single-family conforming mortgage loan limit will remain at $417,000.
The complete 2012 conforming loan limit breakdown, by property type :
1-unit properties : $417,000
2-unit properties : $533,850
3-unit properties : $645,300
4-unit properties : $801,950
However, there are some areas nationally that have earned ”loan limit exceptions” based on the local median sales prices. These areas are known as “high-cost” areas and loan limits within these regions range from $417,001 to a maximum of $625,500.
Some examples of high-cost areas include San Francisco (along with a most of California), New York City, and most of Hawaii and Alaska. Nationally, there are approximately 200 such “high-cost” areas.
Verify your local conforming loan limit and loan limits across Ohio via the Fannie Mae website. A complete county-by-county list is published online.
The housing market continues to signal that a broad rebound is underway. In October, despite sparse home inventory, the number of properties sold increased 1.4% nationwide.
According to data from the National Association of REALTORS®, on a seasonally-adjusted, annualized basis, October Existing Home Sales gained 70,000 units as compared to September, registering 4.97 million existing homes sold overall.
An “existing home” is a home that has been previously occupied and, as compared to prior months, the stock of homes for sale is depleted.
Just 3.3 million homes were listed for sale last month. This represents a 2 percent drop from September and marks the sparsest home resale inventory of 2011.
The current home supply would last 8.0 months at today’s sales pace — the fastest rate since January 2010.
34 percent of all sales were made to first-time buyers
29 percent of all sales were made with cash
28 percent of all sales were for foreclosed homes, or short sales
It also said that one-third of transactions “failed” as a result of homes not appraising for the purchase price; failure to achieve a mortgage approval; and, insurmountable home inspection issues.
This 33% failure rate is huge as compared to September 2011 (18%) and October 2010 (8%). It underscores the importance of getting pre-qualified to purchase, and of selecting a home “in good condition”.
For today’s Cincinnati home buyer, October’s Existing Home Sales may be a “buy signal”. Supplies are falling and sales are increasing. Elementary economics says home prices should begin rising, if they haven’t already.
Remember : The data we’re seeing is already 30 days old. Today’s market may be markedly improved already.
The good news is that mortgage rates remain low. Freddie Mac reports that the average 30-year fixed rate mortgage rate is 4.000% with 0.7 discount points, making homes as affordable as they’ve been in history.
With rising home values, you may end up paying more to purchase your new home, but at least you’ll pay less to finance it.
After a brief return to lower, pre-2009 levels, FHA loan limits have been restored. As signed into law last Friday, maximum FHA loan limits are — once again — as high as $729,750.
The move creates additional mortgage financing possibilities in more than 650 U.S. counties, and promises to increase the FHA’s mortgage market share, which has grown from 6% in 2007 to roughly 30% today.
The change in FHA loan limits also marks the first time that FHA loan limits exceed those of conventional mortgage-backers Fannie Mae and Freddie Mac.
Conventional loans remain capped at a maximum of $625,500.
For home buyers in Cincinnati and nationwide, FHA-insured mortgage offer several advantages over comparable conventional loans, the most commonly cited of which is that FHA-insured loans require a down payment of just 3.5 percent.
FHA-insured mortgages carry other advantages, too, however.
First, FHA home loans are not subject to loan-level pricing adjustments (LLPA). This means that, all things equal, buyers and would-be refinancers with credit scores below 740; or, who live in multi-unit homes; or, who have high loan-to-values are not subject to additional loan fees as a conventional mortgage applicant might.
Second, after 6 months of on-time payments, FHA-backed homeowners are eligible for the FHA Streamline Refinance. The FHA Streamline Refinance is among the simplest loan products for which to qualify with no appraisal required. Even if you’re “underwater” on your mortgage, you can still be streamline-eligible.
And, lastly, at least in today’s market, FHA mortgage rates are below those of the conventional market.
The downside of FHA financing, however, is that all FHA mortgages require mortgage insurance and FHA mortgage rates are often higher versus a comparable conventional loan. This means that, although its mortgage rate may be lower, the payment for an FHA home loan may be higheras compared to a Fannie Mae mortgage with similar credit traits.
FHA loans aren’t always optimal, but with higher FHA loan limits, expect the FHA’s market share to increase.
Carbon monoxide is an odorless, colorless, poisonous gas. It kills more 400 people die in their homes each year.
Carbon monoxide poisoning is especially common during periods of power outage. This is because homeowners throughout Cincinnati fire up their personal home power generators.
Home generators are a leading cause of poisoning by carbon monoxide and, in this 4-minute from NBC’s The Today Show, you’ll learn about home generators, how they operate, and the safety measures everyone homeowner should undertake.
A few basic home generator safety rules, as described in the interview, include :
Never modify a generator or its engine
Keep a 10-foot distance between the generator and your home
Always point the generator’s exhaust away from your home
Furthermore, make sure your home has an ample supply of carbon monoxide detectors, and that they’re operational.
One of the video’s highlights is clever illustration employing a vase of water and a dash of red dye. The demonstration shows just how few carbon monoxide particles are required to cause injury and/or death to a person in your household.
Therefore, if you own a home generator, take 4 minutes watch this video. Safety when home generators is paramount to your health.
Another day, another signal that the market for newly-built homes is improving.
Single-Family Housing Starts rose to a seasonally-adjusted, annualized 430,000 units in October — a 4 percent increase from September and the highest reading in 3 months.
A “Housing Start” is a home on which ground has been broken.
The increase in surprised Wall Street analysts, although it shouldn’t have.
Earlier this week, the National Association of Homebuilders showed that Homebuilder Confidence is at its highest point since May 2010, the effect of better market conditions and more sold units. Rising housing starts amid a lift in builder confidence is to be expected — the two metrics have moved with loose correlation since mid-2000.
However, as with everything in real estate, Single-Family Housing Starts volume varied by location. The nation’s 4 regions posted wide-ranging results :
Northeast Region : + 10.0% from September
Midwest Region : -4.1% from September
South Region : +11.3% from September
West Region : -10.2% from September
Buyers of new construction in Cincinnati can infer two key points from last month’s data.
First, with more homes will being built, home supply should rise, thereby softening pressure on rising home prices. This should help keep homes affordable.
However, the second point is that, with builder confidence rising, buyers are less likely to win price concessions and “free upgrades” in negotiations.
The last 6 weeks of 2011 may be your optimal time to buy new construction. Home prices remain affordable and mortgage rates are rock-bottom. In addition, because there are typically fewer active home buyers during the holidays, you’ll be more likely to locate one of the few remaining new construction “deals”.
Talk to your real estate agent about local trends and new construction.
Just two months after falling to a multi-month low, the Housing Market Index surged again in November, climbing another three points to 21. It’s the second straight month that the HMI posted a 3-point gain, catapulting the index to an 18-month.
The Housing Market Index is monthly report from the National Association of Homebuilders. It’s meant to measure confidence among the nation’s homebuilders, scored on a scale of 1-100.
When homebuilder confidence reads 50 or better, it reflects favorable conditions for homebuilders. Readings below 50 reflect unfavorable conditions.
The Housing Market Index has not read north of 50 since April 2006.
As an index, the HMI is actually a composite reading; the result of three separate surveys sent to homebuilders each month. The National Association of Homebuilders asks it members about current single-family home sales volume; projected single-family home sales volume over the next 6 months; and current “foot traffic”.
Current Single-Family Sales : 20 (+3 from October)
Projected Single-Family Sales : 25 (+1 from October)
Buyer Foot Traffic : 15 (+1 from October)
And, beyond the headline data, there is an important, noteworthy item in this month’s Housing Market Index.
In November, “Current Single Family Sales” climbed 3 points for the second straight month, and is now at the highest point since May 2010 — the month after last year’s home buyer tax credit expired. And, this increase in sales volume is occurring as new home construction is falling, thereby reducing home inventory nationwide.
That’s an important point for Cincinnati home buyers.
With more new home sales and fewer new home listings, prices are likely to increase into 2012. Especially with home builders predicting higher sales levels over the next 6 months, and seeing higher levels of buyer foot traffic through their properties today.
For now, though, home prices are stable and mortgage rates are low. This creates low-cost homeownership throughout Ohio , and helps new home construction remain affordable.
If you’re in the market for new home construction, the next 60 days may prove to be your best time to get “a deal”.
Tuesday, Fannie Mae and Freddie Mac unveiled lender instructions for the government’s revamped HARP program, kick-starting a potential refinance frenzy across Ohio and nationwide.
HARP stands for Home Affordable Refinance Program. The updated program is meant to give “underwater homeowners” an opportunity to refinance at today’s low mortgage rates.
In the two-plus years since its launch, HARP’s first iteration helped fewer than 900,000 homeowners. HARP II, by contrast, is expected to reach millions.
Lenders begin taking HARP II loan applications December 1, 2011.
To apply for HARP, applicants must first meet 4 basic criteria :
The existing mortgage must have been securitized by Fannie Mae or Freddie Mac prior to June 1, 2009
The mortgage payment history must be perfect going back 6 months
The mortgage payment history may not include more than one 30-day late payment going back 12 months
If the above criteria are met, HARP applicants will like what they see.
For HARP applicants, loan-level pricing adjustments are waived in full for loans with terms of 20 years or fewer; and maxed at 0.75 for loans with terms in excess of 20 years.
This will result in dramatically lower mortgages rates for HARP applicants — especially those with credit scores below 740. Some applicants will find HARP mortgage rates lower than for a “traditional” conventional mortgage.
In addition, HARP applicants are exempted from the standard waiting period following a bankruptcy or foreclosure, which is 4 years and 7 years, respectively.
These two items are inclusionary and should help HARP reach a broader U.S. audience.
HARP contains exclusionary policies, too.
The “unlimited LTV” feature only applies to fixed rate loans or 30 years or fewer. ARMs are capped at 105% loan-to-value.
Applicants must be “requalified” if the proposed mortgage payment exceeds the current payment by 20%.
Applicants must benefit from either a lower payment, or a “more stable” product to qualify
And, of course, HARP can only be used once.
Fannie Mae and Freddie Mac will adopt slight variations of the same HARP guidelines so make sure to check with your loan officer for the complete list of HARP eligibility requirements.
A “foreclosure filing” is any one of the following foreclosure-related events : A default notice on a home; a scheduled auction for a home; or, a bank repossession of a home. Because of this definition, a single home can account for up to 3 foreclosure filings — one from each category.
Because of this, we may glean more relevant insight into the foreclosure market by separating RealtyTrac’s foreclosure report into “event types”.
Default Notices : Up 10% from September 2011; Down 31% from October 2010.
Scheduled Auctions : Up 8% from September 2011; Down 38% from October 2010.
Bank Repossessions : Up 4% from September 2011; Down 27% from October 2010.
These breakdowns suggest that, although improved as compared to last year, the foreclosure market is growing. At least, it’s growing in some parts of the country. We can’t forget that — like everything real estate — foreclosures are a local phenomenon.
In October, just 4 states accounted for more than half of the country’s foreclosure filings. Those four states — California, Florida, Michigan and Illinois — represent just 26% of the U.S. population.
Top 10 Foreclosure States : 1 foreclosure per 341 households, on average
Bottom 10 Foreclosure States : 1 foreclosure per 7,434 households, on average
The nationwide foreclosure rate was 1 foreclosure per 563 households.
As a Cincinnati home buyer, foreclosures are worth watching. They account for 18% of home resales nationwide and, in some markets, can be bought at steep discounts versus a comparable “non-distressed” home. That is part of their appeal, in fact.
But just because foreclosed properties can be a “deal”, it doesn’t mean you should rush to buy one. Buying a foreclosed home from a bank is different from buying a non-foreclosed home from a “person”. The contracts and negotiation process are different, and foreclosed homes are sometimes sold as-is.
“As-is” means “this home may have defects”.
Therefore, if you plan to buy a foreclosed home, talk with a real estate professional first. You can learn a lot about the housing market online, but with respect to writing an offer on a property, you’ll want an experienced agent on your side.
Space heaters are popular among homeowners in Cincinnati because, as portable appliances, they can heat a small space quickly and inexpensively. It requires less energy to run a space heater than to raise the temperature of an entire home by a few degrees.
However, space heaters can be dangerous, too.
In its November 2011 report, the National Fire Protection Association reveals that heating equipment was involved in an estimated 58,900 home structure fires, 480 civilian deaths, 1,520 civilian injuries and more than $1.1 billion in damage.
Space heaters caused a disproportionate percentage of the accidents :
79% of all home heating-related civilian deaths
66% of all home heating-related civilian injuries
52% of all home heating-related property damage
If you use space heaters, therefore, please remember to read (and follow) the manufacturer’s instructions for proper usage, and to obey basic safety standards.
First, never place anything flammable within three feet of a space heater. Space heaters get very hot, very quickly and can ignite rugs, paper and curtains.
Next, make sure your space heater is placed on the floor, on level ground. Do not rest it on books, or on furniture.
Also, make sure to turn space heaters off when leaving a room, or when going to bed. Space heaters are not meant to replace whole-home heating and should not be left unattended under any circumstance.
The Underwriters Laboratory makes a list of general safety tips available on its website. Considering how much damage space heaters can cause, the list is worth committing to memory.
As part of its quarterly survey to member banks nationwide, the Federal Reserve asked senior loan officers whether last quarter’s “prime” residential mortgage guidelines have tightened, loosened, or remained as-is.
A “prime” borrower is defined as one with a well-documented, high-performance credit history; with low debt-to-income ratios; and who chooses to finance a home via a traditional fixed-rate or adjustable-rate mortgage product.
After a 2-year easing cycle, the nation’s biggest bank banks report that they’ve reversed course, and are raising the bar on mortgage approvals.
For the period July-September 2010, 88% of responding loan officers admitted to tightening their prime guidelines, or leaving them “basically unchanged”.
If you’ve applied for a home loan of late, you’ve experienced this first-hand.
High delinquency rates and defaults since 2007 have caused the banks to rethink what they will lend, and to whom. As a result, today’s mortgage lenders scrutinize assets, incomes, and credit scores to make sure that nothing “slips by”.
For today’s home buyers and would-be refinancers, the mortgage approval process can be challenging as compared to how it looked just 18 months ago.
Minimum credit scores requirements are higher today
Downpayment/equity requirements are larger today
Debt-to-Income ratio requirements are more strict today
In other words, although mortgage rates are the lowest that they’ve been in history, fewer applicants can qualify. And, with more the housing market still in recovery, it’s likely that guidelines will tighten again in 2012.
Therefore, if you’re among the many people in Cincinnati wondering if it’s the right time to buy a home or refinance, consider that, although mortgage rates may fall, approval standards may not.
The best rate in the world won’t matter if you’re not eligible to lock it.
With Halloween behind us, retailers are in the Holiday Spirit. Businesses know that consumers spent a median $556 on holiday gifts last year and they want this year to be just as strong.
That’s why it’s barely November and, already, Black Friday ads clog our mailboxes and the airwaves. Retailers want our dollars and they’re offering great deals to early shoppers.
There’s one discount a smart shopper should think twice, however — the ever-present ”Open A Charge Card Today And Save 15%” promotion. In the short-term, deals like this will save money.
Over the long-term, however, opening a charge card could cost you much, much more — especially if you plan to refinance your home or buy a new one.
Applying for a charge card can lower your credit score up to 85 points.
According to the myFICO.com website, as a category, “New Credit” accounts for 10% of your 850 possible credit points, comprising the following credit traits :
Your number of recently opened accounts
Your number of recent credit inquiries
Time elapsed since your recent credit inquiries
Your proportion of new accounts to all accounts
Each trait is a negative in the FICO-scoring credit algorithm which means that, with each in-store charge card application, your credit score is likely to fall. How far your score will fall depends on the rest of your credit profile.
Meanwhile, low FICO scores correlate to higher loan fees.
Using a real-life example, assuming 20% equity in a home, for either purchase or refinance, look how loan fees for a $200,000 conforming mortgage change by FICO score :
740 FICO : There will be no added loan costs
720 FICO : You’ll have a 0.250% increase in loan costs, or $500
700 FICO : You’ll have a 0.750% increase in loan costs, or $1,500
680 FICO : You’ll have a 1.500% increase in loan costs, or $3,000
660 FICO : You’ll have a 2.500% increase in loan costs, or $5,000
You can see first-hand how expensive low credit score can be — much more costly than the 15% saved at the mall. That’s why people planning to refinance to today’s low rates and soon-to-be Cincinnati homeowners, shouldn’t rush to save 15% at the register.
For people in want of a mortgage, high FICO scores are worth protecting.
A home appraisal is an independent opinion of your home’s value, performed by a licensed home appraiser. Appraisals are part of the traditional home purchase process, and lenders require them for most refinances, too.
Appraisers are trained professionals. First, they derive a base for your home’s value based on the recent sales prices of homes that are comparable to yours in terms of bedrooms, bathrooms, style, and square footage.
Then, accounting for features and amenities that make your home different, the appraiser applies “adjustments” to that base value.
This methodology is called the “Sales Comparison” approach and the result is your home’s appraised value.
It’s the most common appraisal method used by lenders.
As a homeowner in Cincinnati , you can’t affect the sales prices of your home’s comparable properties, but you can help your appraiser understand how your home stands apart from these homes. This, in turn, can affect your home’s adjustments, resulting in a higher appraised value.
With home appraisals, every valuation dollar can matter. With that in mind, here are a few tips for maximizing your home’s appraised value :
Be home for your appraisal so you can answer the appraiser’s question, if there are any.
Mention any new roofing, flooring, HVAC, plumbing, or windows you’ve installed since purchase.
Don’t mention projects or repairs you’re “about to undertake”. Appraisers don’t credit for unfinished projects.
Make minor household fixes prior to the appraisal (e.g.; leaky sink, running toilet, peeling paint).
Present a tidy home. This can contribute to a higher “overall condition” adjustment.
Lastly, schedule the appraisal for a time that is convenient for your entire household. An appraiser needs to see, measure, and take photos of every room in your home. If a room’s door is closed because of a resting child, for example, the appraiser may need to schedule a second appointment to complete the appraisal, and that can raise your appraisal costs.
The housing market continues to signal that a broad rebound is underway. In October, despite sparse home inventory, the number of properties sold increased 1.4% nationwide.
After a brief return to lower, pre-2009 levels, 
Another day, another signal that the market for newly-built homes is improving.
Homebuilder confidence continues to rise.
Space heaters are popular among homeowners in Cincinnati because, as portable appliances, they can heat a small space quickly and inexpensively. It requires less energy to run a space heater than to raise the temperature of an entire home by a few degrees.
With Halloween behind us, retailers are in the Holiday Spirit. Businesses know that consumers spent a median 
A home appraisal is an independent opinion of your home’s value, performed by a licensed home appraiser. Appraisals are part of the traditional home purchase process, and lenders require them for most refinances, too.
