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Old 11-26-2009, 02:12 AM
 
184 posts, read 732,776 times
Reputation: 111

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We are the sellers. (Fla)

Buyers offered full price with FHA financing.

The 1st appraisal came in $50,000 lower than asking.
A 2nd appraisal just appraised a few thousand OVER asking price!

(I have not seen the appraisal reports yet to really review what comps were used). (Should this report be given to us/ the sellers?)

Does this mean the 2nd appraisal is good and can satisfy FHA? I have been reading that FHA must stand by the 1st appraisal for 6 months? What is the reality here?

** FYI, The 1st appraisal was done one day before the inspection. We got a very good clean bill of health on the inspection for a home built in 1989- VERY VERY VERY minor repairs needed.)

Chomping at bit, since the deal is supposed to settle in mid December.

If anyone can lend their 'FHA- two appraisals' experience, would be greatfully appreciated! Thanks!
(MOD: WASN"T SURE IF THIS BELONGS IN "MORTGAGES" OR "REAL ESTATE" FORUM? - Thanks Skysz..)

Last edited by Skyszlimit; 11-26-2009 at 02:29 AM..
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Old 11-26-2009, 07:52 AM
 
Location: OK
2,764 posts, read 6,778,653 times
Reputation: 1941
Who told you what values the appraisals came in on? What is the list price of the property?
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Old 11-26-2009, 08:02 AM
 
184 posts, read 732,776 times
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Our real estate agent informed us of the appraisal prices AND the property is priced just under $400,000.
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Old 11-27-2009, 09:39 AM
 
Location: New York
2,251 posts, read 4,488,264 times
Reputation: 1610
I had one situation like that when I was a loan officer. It really depends on the lender/underwriter - in my case the final value was determined at the half way point between the difference of the high and low values.

One lender "World Savings" - worked on several loans, they required a third appraisal before closing.

Should a copy of the appraisal by given to you? No, you didn't pay for it.

Closing mid month......?

Bet you the closing is going to be between Christmas and New Years. Why? There is no rush to close mid month.

..
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Old 11-27-2009, 09:52 AM
 
Location: OK
2,764 posts, read 6,778,653 times
Reputation: 1941
$50K difference on a $400K list price is too much. I would ask for either a third appraisal OR to have the previous 2 appraisals reviewed.

Something is not right.
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Old 11-28-2009, 05:48 PM
 
Location: Houston
12 posts, read 36,139 times
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Appraisals are the hop topic of the year causing many deals to fall through. What happens in many cases is that the lender will hire an appraiser who has indicated that they work a particular zip code even though they may live an hr away. Many times the appraiser has no knowledge of the area and doesn't comp the home to similar built homes. Lastly, appraisers are being very conservative on home values due to so much fraud in the past. Likely, the lender will avg the two appraisals and come up with a value to lend on. If it comes back lower than the sales price 1 of 2 things will need to happen to make the deal work. 1) The buyer must come up the difference in cash---which many times they don't have the funds or 2) You as the seller will need to reduce the price in order to comply with lender to lend on your property.
If no one is willing to compromise, you will need to put the home back on the market as active and start the process over. One word of caution, you could face the same issue with the new buyer when they send their lender out to appraise the property.
As a last resort, your sales agent could gather comps to support the sales price and submit to the buyers lender. Its a shot in the dark but its worth exploring. There's a 99% chance that the buyers lender will not do a 3rd appraisal.
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Old 12-01-2009, 08:02 AM
 
Location: OK
2,764 posts, read 6,778,653 times
Reputation: 1941
Quote:
Originally Posted by TravisSellsHouston View Post
Appraisals are the hop topic of the year causing many deals to fall through. What happens in many cases is that the lender will hire an appraiser who has indicated that they work a particular zip code even though they may live an hr away. Many times the appraiser has no knowledge of the area and doesn't comp the home to similar built homes.
This is nonsense. An appraiser MUST, under USPAP, be geographically competent. Doesn't matter if the appraiser lives 10 or 200 miles away from the Subject. Incidentally, any attempts to make it a rule that appraisers can not appraise anything more than 20 miles from their home means that very few rural properties will be sold because rural appraisers frequently MUST travel more than 20 miles. In fact, we frequesntly have to go into several other counties for comparables.

I know why many bad appraiser reports come about, however ..... it is because lenders refuse to pay our rates and instead get somebody from 100 miles away who will do it for $200. We can't do it for that little .... we freuently drives 500 miles to find the best comparable sales and we would lose money on it.

Quote:
Lastly, appraisers are being very conservative on home values due to so much fraud in the past.
This, too, is absurd. Any appraiser who does this is just as wrong as an appraiser who over values.

Quote:
Likely, the lender will avg the two appraisals and come up with a value to lend on.
That would be fiscally irresponsible. Any time there is more than a 5% difference in appraisals, there is something not right with one of them.

Quote:
As a last resort, your sales agent could gather comps to support the sales price and submit to the buyers lender.
In my opinion, 90% of sales agents wouldn't know a proper comparable sale if it jumped up and bit them in the heinie.
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Old 12-01-2009, 08:14 AM
 
Location: Pawnee Nation
7,525 posts, read 15,422,999 times
Reputation: 7043
Quote:
Originally Posted by Annemieke Roell View Post
90% of sales agents wouldn't know a proper comparable sale if it jumped up and bit them in the heinie.
Most have no idea about the definition of comparable, and even less know the difference between comparable and competitive.
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