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My house went for sale in the $150s but the appraisal came $17K low. Does anyone have experience with this? While some would say the house maybe doesn't worth that much we insist it is and it WILL BE too (the area not too far is under construction on a large scale transit project). We would definitely keep the house if we wanted to stay in this part of the country as it is a great investment!
Now our agent and the buyers agent are sending better comps to the appraisal guy. Does anyone have any experience with these?
The main problem is as far as I was told that our house is pretty unique (large, many rooms, old but in very good condition) and so it is hard to find good comps. I wonder too...do appraisal people need to actually GO into the comp houses, too??
What is the appeal process? What kind of loan was the buyer getting? If FHA then I have been told the same appraisal will stand if you decide not to sell the house to this buyer.
...While some would say the house maybe doesn't worth that much we insist it is and it WILL BE too (the area not too far is under construction on a large scale transit project). ...
Well, you can insist it is, but if you want a buyer to get a loan, you may have to compromise. Perhaps the agents can appeal and get it adjusted up, maybe not.
What you think it WILL BE has no bearing on the situation, and won't influence the appraisal. If the appraiser agrees that you are in an appreciating market it may help (vs a declining market which is more typical today).
Now our agent and the buyers agent are sending better comps to the appraisal guy.
This is a violation of Federal Statutes. If the appraiser accepts "better comps" from anyone connected to the transaction, he can be fined $10,000 per day, as can the Realtors. There is a cap on the fines at $6,000,000.
You have three options. 1) Accept the appraisal as is; 2) Have it reviewed by an appraiser competent in your market; or 3) Get another appraisal done.
Quote:
‘‘§ 129E. Appraisal independence requirements
‘‘(a) IN GENERAL.—It shall be unlawful, in extending credit
or in providing any services for a consumer credit transaction
secured by the principal dwelling of the consumer, to engage in
any act or practice that violates appraisal independence as described
in or pursuant to regulations prescribed under this section.
‘‘(b) APPRAISAL INDEPENDENCE.—For purposes of subsection (a),
acts or practices that violate appraisal independence shall include—
‘‘(1) any appraisal of a property offered as security for
repayment of the consumer credit transaction that is conducted
in connection with such transaction in which a person with
an interest in the underlying transaction compensates, coerces,
extorts, colludes, instructs, induces, bribes, or intimidates a
person, appraisal management company, firm, or other entity
conducting or involved in an appraisal, or attempts, to com-
pensate, coerce, extort, collude, instruct, induce, bribe, or intimi-
date such a person, for the purpose of causing the appraised
value assigned, under the appraisal, to the property to be
based on any factor other than the independent judgment of
the appraiser;
Why is it you think that the "appraisal came too low"?
Maybe, the "contract came in too high".
Well, sure depending on how you look at it. We actually got this offer within A WEEK of showing....
We cannot sell lower. We'd rather keep the house, rent it and wait until the house is worth more.
To answer one of the questions above I don't remember what loan he is getting
I read a good article about this subject actually and they say be careful which offer you accept... Well, if we need to keep the house on the market we will look for a buyer who has significant down payment.
They are experienced agents I am sure they know what they are doing.
I am not in CA but this may be different in each state as someone already mentioned.
Quote:
Originally Posted by Goodpasture
This is a violation of Federal Statutes. If the appraiser accepts "better comps" from anyone connected to the transaction, he can be fined $10,000 per day, as can the Realtors. There is a cap on the fines at $6,000,000.
You have three options. 1) Accept the appraisal as is; 2) Have it reviewed by an appraiser competent in your market; or 3) Get another appraisal done.
This is a pretty fine line. Your California quote does not state "instruct" while the federal law does.
You can ask me if I considered such and such sale a comparable. You cannot ask me to use it. I'm the appraiser, I'm responsible for the SOW, I'm responsible for the results. If anyone in our office gets a email saying "Use these comps" a copy will be sent to the FTC, FDIC, and the bank/lender/client. Any attempt to influence my opinion and judgement will be reported.
Quote:
Originally Posted by kotkoda
Now our agent and the buyers agent are sending better comps to the appraisal guy.
Asking to consider or look at "additional comps" is one thing. Saying "these are better, use them" is a whole different ball game.
I am not in CA but this may be different in each state as someone already mentioned.
Its now Federal Law. In this case it sounds like a violation of both state and federal law. At any rate, Federal Statutes trumps State Statutes.
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