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Old 07-29-2013, 12:32 PM
 
Location: plano
5,982 posts, read 7,545,073 times
Reputation: 5040

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Why am I not surprised appraisals are off again, they cant keep up with real home prices rises driven by fundamentals but could track over inflated home values in the bubble period to help it keep going longer than it should have.

Pardon my jaded view of real estate service pros, over correcting now for sins of the past in appraisals and lending under writing, falls in the category of two wrongs do not make a right.

OP I do not know what you can do, fortunately I did not run into this situation in 2010 when I bought, I thought it should not have been an issue with a 35% downpayment but was told that didnt matter to the lenders but have no idea why not, Good luck to you, the seller should negotiate but in a rising price market may take their changes.
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Old 07-29-2013, 02:13 PM
 
50 posts, read 82,459 times
Reputation: 54
Quote:
Originally Posted by TurtleCreek80 View Post
I can't speak to Allen, but it is happening to a good number of pre-owned sales in sales in Dallas' in-town neighborhoods like Preston Hollow (where there is <3 mos inventory on the market and prices are +20% to LY), the Park Cities (where somewhere between 1/3-1/2 of sales are out of MLS "hip pockets" and prices are rising +1% each month), and East Dallas.

If the Allen home was on the market for less than 1 week prior to getting a contract, there were multiple back-up contracts, and/or there are recent sold comps in the neighborhood that support $460k, then the contract price is likely fair. If the home was on the market for a while and no comps support the $460k, then OP is paying too much and needs to walk.
I agree inventory is tight, and we need more info, but the appraisal is a big red flag. Might be a different story in a super hot area like Lakewood, Park Cities, or North Dallas. Unless OP is emotionally married to this particular house, I think there are other good options out there. There isn't such wild variation in Allen housing stock that OP couldn't find something pretty close for less than $460K.
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Old 07-29-2013, 05:57 PM
 
Location: DFW - Coppell / Las Colinas
30,030 posts, read 34,736,152 times
Reputation: 36078
Let me guess... your lender is Bank of America ??

If so, get a new lender. What people say above about home pricing being above appraisals is spot on.

We are seeing this everywhere.
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Old 07-29-2013, 07:51 PM
 
11,691 posts, read 21,342,740 times
Reputation: 10101
Quote:
Originally Posted by Rakin View Post
Let me guess... your lender is Bank of America ??

If so, get a new lender. What people say above about home pricing being above appraisals is spot on.

We are seeing this everywhere.
I am hearing all of the big banks (BoA, Citi, Chase) are a disaster right now with appraisals. Punishing today's buyers because the banks were too fast & loose 5-10 years ago.....
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Old 07-29-2013, 09:14 PM
 
Location: Plano, TX
487 posts, read 1,225,168 times
Reputation: 399
I highly suggest if filing for reconsideration that the respective agent supply the comps they used to arrive at the offer price.
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Old 07-29-2013, 09:56 PM
 
Location: Plano, TX
487 posts, read 1,225,168 times
Reputation: 399
Quote:
Originally Posted by nemadeni View Post
Hi,

We are have a 2007 Preowned Shadock home in Allen,TX under contract for 460k for 4462 sq ft home. But house appraised value based on sales comparison approach came to 434k. Appraised Value based on cost based approach is coming to 452k. Around same size Adjacent home was Windsor Home and was sold 426k recently. Seller has house appraisal from 2010, which states the appraised value at 457k.

We have disputed the appraisal, since seller is not negotiating.Any advice will be helpful.

Thanks
Niel

Is the Windsor home approximately the same age? Same amenities ie pool, spa, outdoor kitchen, view & lot size? You say about the same size, what's the approximate sq footage difference? If its pretty much the same in the major areas mentioned, and based on the information provided that single comparable you mention seems to support the lower value....
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Old 07-29-2013, 10:09 PM
 
390 posts, read 572,877 times
Reputation: 339
I don't know if it would matter in Allen, but make sure (or have your real estate agent and/or lender make sure) that the appraiser knows the area. I've heard of an appraiser not knowing that a house he appraised on Tokalon was a stone's throw from White Rock Lake - resulting in an appraisal being off by some $150k+.
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Old 07-29-2013, 11:39 PM
 
Location: Dallas, TX
1,161 posts, read 745,349 times
Reputation: 248
I was told that, these appraisers are independent entity and get picked randomly. Does it matter if the lender is bofa?
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Old 07-30-2013, 11:25 AM
 
Location: Earth
794 posts, read 1,355,587 times
Reputation: 517
Even if you love the house, ask for seller to equally share the difference. Its Allen for God sake, you can easily find something similar there or in a neighboring town. Seller wouldn't want to break the deal, any future buyer/lender would object as well.
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Old 08-11-2013, 09:16 AM
 
Location: Plano, TX
487 posts, read 1,225,168 times
Reputation: 399
I came across this article a couple of days ago and was reminded of this thread on CD. I don't accept orders from Landsafe (BofA) because their fees are ridiculously low. I would think that any appraiser with multiple clients would put Landsafe at the bottom of their list based on the higher fees they can receive form other companies alone. Don't misunderstand me, they are still charging borrowers about the same fees as other lenders. But this is another reason for both appraisers and borrowers to be cautious.

Bank of America Said to Send Property Reviews to India - Bloomberg

On a side note, I would like to have an update from the OP on their purchase.
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