Observations from the trenches ...
If you are familiar - even vaguely familiar - with real estate terms, then you have heard the phrases "it's a buyer's market" and "it's a seller's market". Those phrases describe who has more "control" of the real estate market.
Well, today we say "it's a lender's market".
"What do you mean by that?" you ask. In our opinion, today's real estate market is "controlled" by the lenders. If the home buyer wants to get a loan, and if a home seller wants to sell their home to the buyer who has to get a loan, then both the home buyer and the home seller have to conform to the lender's requirements.
Home buyers must qualify for the loan with strict lender guidelines.
Home sellers know that their property must qualify for the loan via the appraisal, and stringent appraisal guidelines. These appraisal guidelines changed significantly this past May 1. Read more about it here: Home Valuation Code of Conduct, enhancing the independence of appraisers. The result? Strict appraisal guidelines.
So, in today's real estate market - today's "lender's market" - it's what the lenders want that determines the fate of the transaction.
At least, that's our opinion.