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Old 03-02-2009, 10:28 AM
 
596 posts, read 2,494,037 times
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The confusion over tax appraised value and mortgage appraised value drives me nuts. For the difference between the tax appraised value and the mortgage we've just applied for, you could buy a very nice house. How can this be? We have yet to learn the appraised value from the mortgage people but by the sounds of all of your posts, it will likely be right around the loan amount.

I would like the value to be appraised highter - that would make me feel like we got a great deal. And from my understanding, it wont hurt the loan. But what if it comes back undervalue from the loan amount? Then, if I'm clear on how that works, we wouldnt get the loan?

And why cant the appraisals be a one-or-the-other type of thing where we just have one and thats it? i.e.> get a copy of the appraisal from the county (or wherever those things go) and give it to the lender.
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Old 03-02-2009, 11:25 AM
 
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Quote:
Originally Posted by jctx View Post
But what if it comes back undervalue from the loan amount? Then, if I'm clear on how that works, we wouldnt get the loan?

IIRC, if your appraisal comes back under the value of the loam amount, the bank won't give you the loan. The only way to do get the loan is to increase your down-payment to cover the difference.
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Old 03-02-2009, 11:25 AM
 
Location: OK
2,717 posts, read 6,289,617 times
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Quote:
Originally Posted by cdelena View Post
I had one situation where I was the buyer and the appraiser knew who I was and felt he owned me so he actually called me and asked what I wanted it to appraise for... when I questioned him he said he had 15% to work with and was ready to help. I told him a number and he used it.
I hope you reported him to the state board.
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Old 03-02-2009, 11:33 AM
 
Location: OK
2,717 posts, read 6,289,617 times
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Quote:
Originally Posted by jctx View Post
What do you mean when you say this? **disclaimer: if it is entirely obvious and I'm missing it, I havent had enough coffee yet...
Say a house is under contract for $180,000. Upon reviewing the contract it becomes apparent that 1) the Seller pays for all closing costs, throws in the living room furniture and also a motor cycle.

The furniture and bike are personal effects and should not be included in the appraisal. Ideally, seller concessions should be adjusted for but when you are in a non-disclosure state that is impossible because you can't find out what the comparable sales had for concessions.

So you just report it and let the lender worry about that part. In the meanwhile, these personal effects thrown in could be the cause of the contract price being higher than any comparable sales in the neighborhood. So ..... the appraised value may be lower than the contract price which means that either the deal needs to be re-negotiated OR the buyer has to come up with more cash at closing.
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Old 03-02-2009, 11:53 AM
 
148 posts, read 492,635 times
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Ok, so the purchase price of our home is $154,500 but that's with $8500 in free upgrades. So our home will likely appraise at 155k instead of 163k? Our home has to be appraised by the bank and by VA. Now that has me wondering if the bank will even do their own appraisal, since VA has to do one, but we've already paid the bank $390 for it.
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Old 03-02-2009, 11:57 AM
 
Location: OK
2,717 posts, read 6,289,617 times
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Originally Posted by mrsclmn View Post
Ok, so the purchase price of our home is $154,500 but that's with $8500 in free upgrades. So our home will likely appraise at 155k instead of 163k? .
Not necessarily. But in my experience builders who throw in a lot of freebies have trouble moving their inventory so make sure your appraisal is solid and done by an appraiser INDEPENDENT from the builder.
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Old 03-02-2009, 01:02 PM
 
9,601 posts, read 23,070,143 times
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Appraisal is not an exact science, it's an estimate of value based on the most relevant comps, the condition of the property, etc.
Three different appraisers might come in with three different results. If they are good appraisals, those results will be fairly close to each other.
It's not guesswork, but there's usually a range of +/- four or five percent that can be justified by an appraiser. So let's say there's a range of 200-215 thousand dollars that three appraisers all agree is the range. One might say 203, one might say 208, and one might say 213....
If an appraiser knows that the appraisal has to come in at least at 208 for the loan to work, he/she is not really doing anything really blatantly wrong if his initial appraisal has come very close to that to begin with. There's a little wiggle room. If the appraisal comes in at a range of 150-165, and the appraiser changes his numbers to make the loan work at 208, that's different, and is clearly unethical, at a minimum..
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Old 03-02-2009, 02:55 PM
 
87 posts, read 347,684 times
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It doesnt matter if you are getting a free motorcycle and furniture for the house because those items are not part of the collateral for the lendor. If you default, all the lendor gets is your house. So they want to make sure that the loan they are supplying you is vald for just the house and land that you are purchasing. If you purchase price is higher by $5k, and you are not covering that $5k from out of pocket / down payment, then you are basically asking for the bank to loan you that $5k without any additional collateral for it.
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Old 03-02-2009, 05:40 PM
 
Location: OK
2,717 posts, read 6,289,617 times
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Quote:
Originally Posted by Fant View Post
It doesnt matter if you are getting a free motorcycle and furniture for the house because those items are not part of the collateral for the lendor. If you default, all the lendor gets is your house. So they want to make sure that the loan they are supplying you is vald for just the house and land that you are purchasing. If you purchase price is higher by $5k, and you are not covering that $5k from out of pocket / down payment, then you are basically asking for the bank to loan you that $5k without any additional collateral for it.
Right.
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Old 03-03-2009, 05:27 AM
 
596 posts, read 2,494,037 times
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How common is it for an appraisal to come in significantly higher than the loan amount?

Do appraisers always know what the loan amount is in advance?

How common is it for a purchaser of a resale home to hire an independant appraiser?

Can the independant inspector help give the purchasers any insight into the value of the home outside of what areas of the home need some repair, can they give an estimate on the cost of these things in their report?

Thanks
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