Maine Real Estate Question to Recent Sellers (China: sale, mortgages)

[Need to Relocate]

Hi everyone,

I'm just trying to get a feel for how my sale and repurchase will go. Anyone experiencing that their buyer's lender's appraisal came in low? Or are appraisals in general going through alright?

Has anyone found they had to go down in their original accepted price to get the sale done of their property recently? -due to appraisal, not inspections?

And anyone happen to turn around and purchase another property and experience the same problem on the buying end?

This market is making me so stressed and I'm trying to prepare for everything just in case.

I appreciate any and all advice you can offer.

Thanks so much in advance.

[Northern Maine Land Man]

I'll temporarily bookmark this and answer you next Friday.

[Need to Relocate]

Many thanks, I appreciate any feedback

[WhoFanMe]

If there is any uncertainty in my mind about the house appraising, and I am representing the buyer, I add a clause to the Purchase and Sale Agreement allowing the buyer to withdraw and receive the earnest money deposit back if the house does not appraise at the agreed upon price.

[ChristineL]

Does a realtor, when doing a market analysis for a seller, take appraisals into account? Aren't most appraisals less than asking price?

[Elcarim]

We were told by our agent that market value and appraised value are NOT the same. I've also found first hand in our area that appraisals tend to be swayed by who is paying for it. Honestly. Our last appraisal when doing a refi a few years back started with the appraiser asking us how much we are trying to borrow. When the appraisal came in, it was within $100 of what we were asking to borrow. Our loan officer told us, "If we don't get the appraisal we need, we have another appraiser we'll use."

That told all!

[WhoFanMe]

Hi ChristineL, welcome to the forum. If a seller has an appraisal and is willing to share it, I will look at it - not for the value, but primarily for the dimensions of the house and lot, along with some history of the neighborhood. I'm a marketing guy and not good with a tape measure, so if I professional does that work for me - I'll take it. Often, the town records and the appraisal will disagree on the living area of the house, which must be entered into MLS, along with the source. As far as I'm concerned, an appraisal over 90 days is not valid - the market is changing from week to week. Elcarim correctly pointed out that, in general, an appraisal for refinancing is going to come in higher than a purchase.

The other thing about appraisals it they are an opinion of value at a specified period of time. A very educated opinion, but an opinion nonetheless. An appraiser gets paid at the completion of her/his appraisal regardless of what the number is. A real estate agent gets paid at closing and if the house is priced incorrectly and doesn't sell, we don't get paid. We both look at the same comparables - houses that have sold in the last six months, houses under contract and houses that are currently on the market. When I sit down with a seller, I also show them those that have expired or been withdrawn from the market to help them learn from other's mistakes. Getting the initial pricing position correct and marketing aggressively is vital to getting the house sold quickly, otherwise the house gets mingled with the rest of the inventory.

[Northern Maine Land Man]

"Does a realtor, when doing a market analysis for a seller, take appraisals into account?"

It is unusual for a broker to have access to an appraisal unless the owner provides it. Appraisers are historians. They are required by their own rules to look at similar properties that have sold within a certain distance and a certain time. There are few exceptions.

Real estate brokers on the other hand are visionaries. They take into account such things as nearby recreational opportunities, schools, the job market and the neighborhood when recommending a price for a seller. It's his job to get it sold. An unrealistic price will probably cause the listing to expire.

Appraisers are under a lot of pressure right now because some homes may be worth less today than they were five years ago. This could be because of a mill closing or a scheduled military base closing. Investors in Europe, Red China or Saudi Arabia have no clue about local conditions and they are screaming about their worthless sub-prime mortgages. They thought real estate values would rise forever. Want real estate values to rise? Cut the price of oil.