A survey of 188 home building executives by John Burns Real Estate Consulting finds that many builders are reluctant to sell homes to veterans, according to Jody Kahn, vice president of John Burns.
Kahn says the reason for this is that VA appraisers have become so conservative that the homes rarely close. In addition, the low appraisals impact the value of future community sales, costing the builders significant money.
The main difficulty is with VA procedures, not with the builders; some of the VA procedures make it difficult to challenge mistakes, among other reasons.
Below are some common complaints builders shared about the VA appraisal process. To read about each in detail, click here.
• Appraisers lack market knowledge
• VA appraisals take longer
• Focusing on the lowest comps, not most relevant
• No value given to options
• A feedback gap
• Effectively no way to correct or modify the appraisal
• Low value impacts all appraisals for the next six months
• Lenders can't avoid specific VA appraisers known for lowball values
Click here to read more.
Advertisement
Related Stories
Off-Site Construction
New Study Examines Barriers and Solutions in Manufactured Housing
The study from Harvard's Joint Center looks at the challenges faced by developers using manufactured housing and how they're overcoming those barriers
Affordability
The Disappearing Act That Is Middle-Income Housing
An expert weighs in on the diminishing supply of middle-income housing, which is particularly acute in California, and what to do about it
Off-Site Construction
Utah Passes Bill to Regulate Modular Construction at the State Level
Goals for housing innovation and affordability meet in Utah's passage of a new bill that establishes a statewide modular construction program
