Southampton - In order to gain an insight into the real estate market on the East End of Long Island from a licensed real estate appraiser's perspective, I spoke with Charles Fuchs of Charles Fuchs Appraisals located in Montauk.

Charles's 20 years experience doing appraisals primarily from Southampton to Montauk, but also on Shelter Island and the North Fork, provided insights into a broad but varied geographical area over an extended period of time.

Charles Fuchs of Charles Fuchs Appraisals in Montauk. (Courtesy Photo: Fuchs)

I asked Charles at what point in time did he see the market begin to change and in what way.

"At the end of 2007 I saw that owners were choosing to hold on to their properties rather than sell them in a declining market, and buyers were more likely to hold off buying. I am now seeing the market begin to stabilize. It started with the lower price range, then gradually the middle range, and now I am seeing it with the more expensive homes."

How have attitudes of sellers and buyers changed since the decline in real estate values, I asked.

"I see more "due diligence" on the part of buyers. They want to know what a property is worth before making an offer. Even cash deals are subject to appraisals. I also see sellers wanting to know in advance what the property is likely to appraise for before putting it on the market."

Do you see the appraisals supporting the prices arrived at between the seller and buyer at the time of offer and acceptance, and what is the reason for your answer?

"Yes I do, almost always, and I think in addition to the reasons I already gave, real estate agents are avoiding the over priced listings."

I asked Charles what his main source of data was for determining what comparable properties have sold for.

"I use www.compsny.com, and www.geodataplus.com as my sources. I find them to be the most current and accurate."

What is your turnaround time on an appraisal?

"Usually three days, but I can do 24 hours if I have to."

Will the bank accept anything other than properties that have actually transferred when you do an appraisal, I asked.

"They require at least three "closed" properties. I can use properties for sale but I have to adjust the list price for what I think the house should sell for based on my knowledge of the market area."

Continuing, "Only about 20 percent of my business today is home sales. The other 80 percent is made up of estate work, divorces, tax assessment challenges, refinances, and home equity loans. The main sources of my referrals are lawyers and accountants. The banks pick from a pool of appraisers through what amounts to a lottery system. Mortgage brokers can't refer appraisers. That's the main reason I'm doing fewer home sale appraisals."

A final question I posed to Charles was regarding certificates of occupancy.

"It's my job to report the facts to the lender, and that's what I do; then it's up to the lender to do their job as well as the lawyers.

I give an opinion of market value."

Editor's Note: John will be teaching a 22.5 hours Real Estate Continuing Education class at Long Island University in Riverhead on May 9, May 11, and May 15. For information and registration contact Rosemary Malone at 631-287-8334 or by email at rosemary.malone@liu.edu.