My New Blog

Hello to All

Its January 2024 Now and as previously predicted, the loan mortgage rates will continue to drop to lower levels as we get closer to the November 2024 election.

I continue the new year with new requests for appraisal assignments for Estates, Trusts, Divorce, Date of Death and Retroactive Reports. These type of Non Lender work Assignments are actually several pages longer as I include MLS Client Pages for each comparable sale in the report.

Do other appraisers do this to their reports?

No, Not many, as it is a lot more work, but I like for the reader to have a well written report for their use for a legal purposes. 

Additionally, I include in the appraisal report an MLS CMA with a radius of 1-2 miles and the actual search parameters used to create the report. Then I export an entire years of data surrounding the subject property to create a unique report to the subject property with 8-11 statistical charts and scatter graphs showing trendlines for a reader to made sense of the data in the report.

Side by side, clients have remarked "there is a huge difference" in comparing my reports with statistical data to another appraisal report without the added analysis.

I am always available by phone or email for your real estate needs.

Tom Melville California Certified Residential Appraiser / California Real Estate Broker Owner. Licensed Professional in California Real Estate since 1980 to the present. 
831-883-0406

Resume is also located under Staff Profiles on Home Page, I am the only person on Staff.

Lately for the last number of years, I have been valuing real estate properties in the past up to 20 years ago for legal purposes, estates, lawyers, divorce and family matters.

Since I have been a Licensed California Real Estate Professional circa 1980 to the present, my experience and recall of lived past economic events helps me to do this type of work.

Recently, I watched a newer version of The Time Machine, H.G.Wells on television classics and now with the aid of computers in real estate, I travel back in time to make sense of the data I put into my reports. 

It used to seem like work, but now seems like an adventure every time doing this type of Forensic Retrospective Appraisal assignments.

Its better than doing crossword puzzles, as there are a few Ph.D. appraisers have told me why they are in the Real Estate Appraisal Field.

I have a search methodology for data that I use for all my assignments which I can explain to the reader as to how I did it with provable search methods.

This type of work is different from mortgage lending as it requires even more data in the reports for a reader to follow as to the valuation process.

As usual, I back up the data in the report with 8 MLS statistical charts and scatter graphs which is part of my signature reports.

 No report is the same as each property is unique as to the data produced in the initial MLS CMA Data which is downloaded and exported into the Retro Reports.

If you have any real estate questions or concerns or are simply looking for Real Estate Professional to talk to then give me a call.

Regards,

Tom Melville 
Calif Certified Res Appraiser
Calif Real Estate Broker Owner
831-883-0406

With the recent current events of increased inflation of goods and services, new real estate mortgages as of 6/2022 are also on the rise. National News shows a slowing of listings of homes for sale, yet home prices continue to rise.

 Location is everything as not all real estate markets react the same as others to the number of buyers or sellers in a market area.

Here is Central California, there is a shortage of homes and an over supply of buyers to the market. In looking at the current condition, I as a working Real Estate Professional can compare back to the 1970's when the same conditions existed with construction companies working 24 hours with several crews building new home communities as the need for homes was the same senario as today.

Home Interest rates were 22.5 % for an FHA Loan with a 20 Year mortgage in 1974 and a lot of interest was applied with little principal to the mortgage.

This time was after the Oil Embargo where lines of cars were stopped at gas stations and the ration of gas. Your license plate determined by odd or even numbers if you could purchase gasoline at a gas station on a particular day.

As for current real estate mortgage rates. if you can buy now, then you should go for it. Down the road in a few years mortgage interest rates will return to lower rates and you can always refinance or, do like I did in the 1970's by paying two mortgage payments at a time or more to offset mortgage interest rates. 

I have always made a mortgage payment, followed by a separate check labeled "Principal Only" to pay off as quick as possible higher interest mortgage loans. 

So essentially, by paying additional sums each month toward your mortgage you are effectively paying off sooner a loan and significantly reducing the mortgage interest.

This is not Rocket Science or Fuzzy Math. It works and many of my real estate customers over the years thanked me again and again as to suggesting this simple method to build equity in their home faster with a plan of action.

My former mentor always told me to "Plan your Work and Work your Plan, or Else Some one else has a Plan for you."

If you have any real estate questions or concerns, give me to discuss your thoughts or concerns? 

Tom Melville
Aptos, Ca

Licensed as a California Real Estate Professional since 1980 to the present.

Here is my forecast for 2022 Real Estate Market.

There continues to be an oversupply of buyers to the market and a shortage of available home for purchase.

The First quarter or first month of 2022 interest mortgage interest rates will drop to continue the Purchase and Refinance Markets. 

Lenders are offering pay bonus for experienced staff support in Dec 2021 so expect another year of record sales of homes and refinance of existing loans for lower interest rate loans.

Lenders are considering Desktop Appraisal Products for home purchases which is designed to speed up the appraisal process - but I dont think a desktop is faster if it involved added scanners/inspectors into the field, while the appraiser stays in front of a computer observing the property via a cell phone video camera. But it might work to some degree to lessen the overall workload of appraisals to be completed by the current shortage of appraisers left in the field. 

My appraisal business will continue to deliver Nothing but the Rush assignments which are full inspections by the appraiser. I inspect at noon and deliver the full report in 3-4 days or less not weeks from now.

Most appraisal firms will be back logged with weeks or months of appraisal work as it has been in all of 2021 to the present. Hopefully the Desktop Appraisal Assignments will help the process in 2022.

Contact me if you have a real estate need or question that just needs to be answered.

Tom Melville
California Real Estate Broker / Certified Residential Appraiser
41 years professional licensed in California Real Estate since 1980 to the present.





 

Recent mortgage banker news is that more mortgage applications were again coming in as this is summer now.

 After the July 4th holiday, I expect the market activity to increase again with more real estate listings of homes for purchase with loans and more refinance loans. I am still seeing properties with older mortgages at 7% that are now getting around to refinance to lower rates.

 It is very important to know your current interest rate and how much you can save with a refinance. Additionally, more listing and properties will be added in July, August and September. This market will continue all the way into December with present activity.

Looking Back at my own first house purchase in a runaway real estate market Circa 1974. San Diego properties were increasing in value very fast. Purchase Price $29,500 with a 20 year mortgage FHA at 22.5% loan rate. My Payment was $500 per month. Same house today is in the $450K value range.

 When I bought my first house in 1974 as a single guy at the tender of 20 years old, my FHA interest rate was 22.5%. My monthly payment was $1 dollar toward principal loan each month and $499 dollars eaten up into interest on a house that only cost $29,500. 

I made double payments with one principal and interest and the second payment principal only. Eventually mortgage rates returned to lower levels back then but many people did not understand the higher interest rates were eating up and equity.

Some people made their on time monthly payments on home loans but still lost homes due to the higher interest rates or market conditions eating up any equity in the 22.5 % FHA Home Loans like the one I had.

Today these low rates are amazing, but back in 1977 my PHD college teachers in Real Estate were forecasting residential homes would be in the million dollar range and it was difficult to comprehend back then, but they were right. 

It you have any questions or thoughts about Real Estate and would like free advise then give me a call. I am a Broker Owner of my own Real Estate Firm and a Certified Residential Appraiser.  

Melville Appraisal 
Tom Melville Properties
Dre 00774101
Broker Owner 
831-883-0406

 

04/12/2020

Real Estate Appraisal has always been an Essential Service to the Financial Sector.

 During the present California Shelter in Place rules for the public, it takes a minimum of Twenty Percent of all Essential Business to remain open to keep the economy of a city  moving forward. 

Real Estate Appraisers are presently making home inspections using Personal Protection Equipment at a minimum of mask, gloves and booties if requested by the home owner. 

There are several guidelines on the present Shelter in Place that are followed by Appraisal Associations, Realtor Associations both National Association of Realtors and the California Association of Realtors and Real Estate Property Management Companies as to proceed and inspect a home. 

Lenders are required to have a full interior appraisal inspection to assist home owners with cash out refinance. It is possible to have an exterior only appraisal of your home, yet the lenders prefer interior inspections to insure the value of the property being appraised.

 Even during the California 1989 Earthquakes and other large brush fires in summer, appraisers were ordered out to the field to inspect homes to see the extent of damage.

 This current Shelter in Place time is busy for appraisers as with the low refinance interest rates, many home owners are using equity in their homes to get through this period of time.

If you need a real estate professional to appraise your property, then give me a call. Or if you need to consider listing or consultation as to listing a property on the MLS, I cover that service as well.

Tom Melville, MRA, MNAA
Real Estate Appraiser, California Real Estate Broker/ Owner
Melville Appraisal, Tom Melville Properties
AR012768, DRE# 00774101
831-883-0406