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Old 05-23-2008, 12:08 PM
 
Location: Cape Coral Fl /Randolph NJ
12,419 posts, read 22,618,765 times
Reputation: 9731

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Quote:
Originally Posted by Alex07860 View Post
We were doing more than 20%, but the lender did not have to do anything, since the seller agreed to split the difference 50/50. So out of the 25k less appraisal, the seller ended up lowering his price by $12.5k and I had to add another $12.5k out of pocket.
Hmmm don't real estate agents take this into consideration when coming up with a listing price?? Do they explain this to their client..I mean why list a house for say 300k if you know an appraisal is only going to come in at 290k..especially in this market
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Old 05-23-2008, 12:28 PM
 
Location: Here but I spend time There.
1,972 posts, read 4,643,951 times
Reputation: 554
Quote:
Originally Posted by njkate View Post
Hmmm don't real estate agents take this into consideration when coming up with a listing price?? Do they explain this to their client..I mean why list a house for say 300k if you know an appraisal is only going to come in at 290k..especially in this market

That's a good question, but this was during the boom days, so perhaps they thought they had the house priced right :::shrugs:: in the end, it worked out for us because we still ended up w/ the home at a lower priced.
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Old 05-23-2008, 07:33 PM
 
Location: Stewartsville, NJ
7,577 posts, read 19,249,043 times
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My attorney who also has multiple properties and deals with many mortage brokers tells me that appraisals today are at 80% of what the mortgage company really thinks the house is worth... it's called CYA!
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Old 05-13-2010, 10:17 AM
 
Location: Metuchen NJ
31 posts, read 79,638 times
Reputation: 14
It's my feeling that the home inspection is for you and the appraisal is really for the bank. They want to make sure that they will be able to get rid of the property if you default.

I didn't mind laying out the $600 for the home inspection because it helped us know what kind of mess we'd be getting ourselves into, early in the game, before emotional attachment and/or the heavy paperwork came into play. My husband and I were prepared to do our own fixing on the home, and hire a contractor for major items - but we knew of course that we didn't want insect issues or structural issues. When we had the inspection, he found a few items that needed fixing- and we ended up getting over $10K off of the purchase price. So the $600 seems like nothing special after all's said and done.

Wiley - I'm hearing the same regarding the 80% - I was bracing for the worst when I downloaded my appraisal but luckily it came in almost $30K higher than what we're paying. Comparables in the area are going for $40-50K more, and don't have the lot that this house does. With about $10K in contractor repairs and a little sweat equity, this home will be in better shape than any of those, plus twice the yard size.

My opinion - home inspection is a precious gift for homebuyers. Cost is minimal compared with walking into a rats nest (sometimes literally).

Best of luck.
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Old 05-13-2010, 10:58 AM
 
95 posts, read 433,267 times
Reputation: 52
[/quote]My opinion - home inspection is a precious gift for homebuyers. Cost is minimal compared with walking into a rats nest (sometimes literally). [/quote]

Agree, BUT, only if you have a good inspector. Try to avoid housemasters, the guys was so vague and general, I almost didn't pay. Perhaps it was just this guy and may be others are different at housemasters, but boy I wasn't happy.
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Old 05-24-2010, 10:28 AM
 
Location: Metuchen NJ
31 posts, read 79,638 times
Reputation: 14
O-er in WO, I 100% agree. If I had a bad experience during inspection, I think I would have paid for a 2nd one with someone else.

BTW> If anyone would like the name of a fantastic home inspector who takes you through every inch with professionalism but also friendliness, please DM me. I would be overjoyed to share his name and contact information.
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Old 05-21-2011, 06:07 PM
 
1 posts, read 1,127 times
Reputation: 10
I just got the appraisal back from the house that I am trying to purchase. It came back $55,000 lower than the purchase price. The sellers are willing to negotiate with me, but I am not sure what my offer should be now. Worried if I go to much higher than the appraisal I would be throwing money away. Any thoughts?
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Old 05-21-2011, 08:26 PM
 
Location: NJ
17,579 posts, read 35,787,569 times
Reputation: 15967
Appraisals aren't an exact science. If they were every house would just get an appraisal and that would be the purchase price. A house may be worth more or less than what an appraisal says to an individual buyer.
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Old 05-21-2011, 09:21 PM
 
8,815 posts, read 12,307,752 times
Reputation: 8427
Appraisals nowadays seem to be a bit of a nether-regions-pull. The market is so slow that there often aren't many valid and current comps. And the new standards require them to extrapolate from a downward trend, so if a very few comps have sold and there's a downward trend in them, the appraiser will assume values are dropping at the rate indicated by the comps, which can result in very low numbers.

Of course this ends up being a self-fulfilling prophecy.
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Old 05-23-2011, 09:06 PM
 
Location: Northern NJ
6,365 posts, read 6,466,031 times
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Quote:
Originally Posted by hbullard View Post
I just got the appraisal back from the house that I am trying to purchase. It came back $55,000 lower than the purchase price. The sellers are willing to negotiate with me, but I am not sure what my offer should be now. Worried if I go to much higher than the appraisal I would be throwing money away. Any thoughts?
That's a substantial deficit. I might be reticent to move forward without getting another opinion. Overpaying in this market makes no sense, as many markets in northern NJ are showing renewed signs of declining prices.
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