From the April issue: Residential real estate broker Elaine Clayman has noticed a change in her buyers lately. With prices falling for the past year, buyers had seemed entirely focused on one thing: cost. How much they actually liked the apartment was less important than getting a great deal. “Liking it was not part of the equation for a while,” said Clayman, a managing director at Brown Harris Stevens. “I felt like I was selling commercial real estate.” But in the last few weeks, she’s noticed a shift in her buyers. Suddenly, they seem willing to pay slightly more for an apartment they love. [more]

Housing industry leaders met with Attorney General Andrew Cuomo yesterday to discuss modifying some rules in the Home Valuation Code of Conduct.
Industry leaders blame the code, which was created to protect
appraisers from pressure to inflate home valuations, for the recent
increase in below-market valuations that have further slowed a recovery
for the housing sector. According to a recent survey by the National
Association of Realtors, 20 percent of its members claimed to have lost
at least one deal due to low valuations. Under the code, anyone whose
compensation depends on the sale of a home is banned from ordering
appraisals. However, the code does not explicitly prohibit interactions
between housing professionals and appraisers. To clear up confusion,
housing industry leaders say they would like to see a new set of
guidelines that clearly spells out what type of interactions are
allowed so fear about breaking the code may be alleviated. [CNN]
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Real estate appraisers say the Home Valuation Code of Conduct is
negatively affecting business. The code was designed by Attorney
General Andrew Cuomo and the Office of Federal Housing Enterprise
Oversight to curb unethical practices and eliminate conflicts of
interest in the appraisal industry. Bill Garber, director of
governmental affairs at the Appraisal Institute, said the code does not
provide much guidance on how lenders should comply with the new rules,
which holds lenders accountable for appraisers. Many lenders have
responded to the new rules by implementing an automated system to
select appraisers from a pre-approved list, which appraisers say leaves
veteran appraisal experts competing with those who are less qualified.
Lenders are also using middlemen to distance themselves from
appraisers, and in some cases, the middlemen can take up to 60 percent
of an appraisal fee, which is typically about $400. [more]