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The appraiser doesn't care what the loan amount is........it's totally irrelevant. An appraisers job, in a mortgage finance transaction appraisal, is to determine an opinion of the market value only. It is the banker who determines if sufficient collateral exists to extend a loan.
That is a true statement.
Appraisers are professionals and licensed accordingly. They use various methods to determine current value of properties and are subject to reviews of their opinions. They would jeopardize their license and livelihood if they project or use anything else but known factors.
Appraisers are professionals and licensed accordingly. They use various methods to determine current value of properties and are subject to reviews of their opinions. They would jeopardize their license and livelihood if they project or use anything else but known factors.
My buyer's appraiser could not get in the lock box, so with me being the only one with the key, he called me and I told him it would take me about 15 minutes to get there. When I got there, he made the statement that he was "done with the exterior".
"already" done the outside?
My agent said the appraisal might involve another 3+ hours in the office.
So visual was 15 minutes or less, on the exterior. What ever they look for externally, it doesn't take long.
He's appraising, not home inspecting. Do not confuse the two or you will be seriously disappointed.
15 minutes is more than adequate on a smaller property. He's going to measure and look for a obvious defects, photograph, and jot some notes. It's not his job to go looking for the problems.
And remember, he's working for the bank, not for you.
I recently closed on an FHA loan. The FHA appraisal came in $20K under contracted price. The bank was desperate to sell, and lowered the price of the house by $20K.
I recently closed on an FHA loan. The FHA appraisal came in $20K under contracted price. The bank was desperate to sell, and lowered the price of the house by $20K.
desperate banks can be good.....eventually......
Fannie Mae wanted 40 on a foreclosure, I offered 35, they countered with 39, now they are seeking 34,900. They could have taken my 35.
Now I'm looking at another Fannie home, they want 34,900, I just offered 30 and I'm "waiting" on the "no" or the 34 counter offer.
My agent said that the asking price might be based on Fannie's own internal appraisal (there is no appraisal fee if you use HomePath for financing), or the banks can pretty much ask what they want, regardless of appraised value.
My buyer's appraiser could not get in the lock box, so with me being the only one with the key, he called me and I told him it would take me about 15 minutes to get there. When I got there, he made the statement that he was "done with the exterior".
"already" done the outside?
My agent said the appraisal might involve another 3+ hours in the office.
So visual was 15 minutes or less, on the exterior. What ever they look for externally, it doesn't take long.
I just finished an appraisal inspection on a 2314 sq ft transitional style 2 story home on a golf course about two hours ago. The exterior inspection took less than 10 minutes. Let me explain why. I was there to determine the physical characteristics of the home. It took me about 30 seconds to see that the house had brick siding, metal gutters, a concrete 2 car driveway, vinyl windows, metal screens, a masonry porch, screened patio, wood deck, an asphalt shingle roof and a brick masonry crawl space. It took another 6 to 8 minutes to measure the exterior walls. All 12 of them.
I'm not a home inspector. I don't crawl underneath the house to check for foundation damage. I don't go up on the roof to look for missing shingles. I don't test electrical outlets, window locks or light fixtures.
I'm a real estate appraiser and my job is to determine the market value so that my client (usually a lender of some sort) can use the market value to calculate loan risk. Appraisers have absolutely NOTHING to do with what you loan amount is, what the buyer pays, what the seller gets or if your loan will close or not.
And this is the most important thing to remember about an appraisal. The appraiser (assuming he/she is doing his/her job properly) does NOT determine the value of real estate. The market determines the value and the appraiser simply reports that value to the client.
I just finished an appraisal inspection on a 2314 sq ft transitional style 2 story home on a golf course about two hours ago. The exterior inspection took less than 10 minutes. Let me explain why. I was there to determine the physical characteristics of the home. It took me about 30 seconds to see that the house had brick siding, metal gutters, a concrete 2 car driveway, vinyl windows, metal screens, a masonry porch, screened patio, wood deck, an asphalt shingle roof and a brick masonry crawl space. It took another 6 to 8 minutes to measure the exterior walls. All 12 of them.
I'm not a home inspector. I don't crawl underneath the house to check for foundation damage. I don't go up on the roof to look for missing shingles. I don't test electrical outlets, window locks or light fixtures.
I'm a real estate appraiser and my job is to determine the market value so that my client (usually a lender of some sort) can use the market value to calculate loan risk. Appraisers have absolutely NOTHING to do with what you loan amount is, what the buyer pays, what the seller gets or if your loan will close or not.
And this is the most important thing to remember about an appraisal. The appraiser (assuming he/she is doing his/her job properly) does NOT determine the value of real estate. The market determines the value and the appraiser simply reports that value to the client.
thanks for the informative info.....
an update on my 30 offer to Fannie Mae....sure enough they countered to 34,000 from 34,900.
Can banks ask whatever they want for a house, or do they have to ask what it appraises for?
Fannie Mae uses HomePath as their lender and an appraisal is not required, so my agent is not sure if Fannie must base their asking price
on their own appraisal, or can they ask whatever they want....obviously they would offer near market value......but do they have to ask no more than the appraised value?
My buyer's appraiser could not get in the lock box, so with me being the only one with the key, he called me and I told him it would take me about 15 minutes to get there. When I got there, he made the statement that he was "done with the exterior".
"already" done the outside?
My agent said the appraisal might involve another 3+ hours in the office.
So visual was 15 minutes or less, on the exterior. What ever they look for externally, it doesn't take long.
I think you need to stop listening to your agent.
For an appraiser, the "exterior" consists of measuring the house, checking the roof and exterior for deferred maintenance and taking pictures of the house from different angles and the street.
Unless the house is 4,000 sf, the exterior doesn't take very long.
As far as "involving 3+ hours in the office" ..... a properly researched and analysed appraisal report takes considerably longer than 3 hours.
I just finished an appraisal inspection on a 2314 sq ft transitional style 2 story home on a golf course about two hours ago. The exterior inspection took less than 10 minutes. Let me explain why. I was there to determine the physical characteristics of the home. It took me about 30 seconds to see that the house had brick siding, metal gutters, a concrete 2 car driveway, vinyl windows, metal screens, a masonry porch, screened patio, wood deck, an asphalt shingle roof and a brick masonry crawl space. It took another 6 to 8 minutes to measure the exterior walls. All 12 of them.
I'm not a home inspector. I don't crawl underneath the house to check for foundation damage. I don't go up on the roof to look for missing shingles. I don't test electrical outlets, window locks or light fixtures.
I'm a real estate appraiser and my job is to determine the market value so that my client (usually a lender of some sort) can use the market value to calculate loan risk. Appraisers have absolutely NOTHING to do with what you loan amount is, what the buyer pays, what the seller gets or if your loan will close or not.
And this is the most important thing to remember about an appraisal. The appraiser (assuming he/she is doing his/her job properly) does NOT determine the value of real estate. The market determines the value and the appraiser simply reports that value to the client.
For some reason I can't "rep" you again, but that was an excellent post!
For some reason I can't "rep" you again, but that was an excellent post!
I did it for you.........
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