Appraisal Question (foreclosed, mortgage, sales, price)

[Need to Relocate]

Hi, we are selling and repurchasing in the same county most likely... long story but that's our current thought. I posted this in my state's thread but then I remembered here is this real estate thread.

Anyway, so now I'm trying to prepare -

can anyone give me an idea of how the recent sales are going? Are appraisals alright or too low?

Many thanks

[Racelady88]

Might be helpful if you were willing to let us know where you are.

[bentlebee]

I recently spoke with an appraiser for Bank of America, since I stopped her and asked why she was making a picture of my home. Her answer was that she was doing appraisels and explained she takes 3 last closed deals, pending contracts and listed sales. The pending is probable because she needs to do the appraisel for to decide for the mortgage. In todays market appraisels can be very hard (I mean if you need one to obtain a mortgage) since where we live (Tampa area) there are many foreclosures and short sales which makes the value go down. I'm guilty on that part too, since I closed recently for the lowest price, so that might make it harder for a buyer who is having an offer on a "normal" sale to get the mortgage. For the seller it is harder to sell, since you need some one who has some cash and for the rest need a mortgage. I told the appraiser that the seller (the short sale that I did) had a judgment against her and the judgment + my closing price together would make up for a "normal" sales price. She told me that won't be taken in consideration. I think it should, because other wise it could be very hard for others to even sell the home in todays market other than a short sale or low price and how do we get the value up again for the once who will need the mortgage.

[Need to Relocate]

Southern Maine

[Goodpasture]

Originally Posted by bentlebee

I told the appraiser that the seller (the short sale that I did) had a judgment against her and the judgment + my closing price together would make up for a "normal" sales price. She told me that won't be taken in consideration.

Under no circumstances should a short sale or any other sale made under duress be used as a comparable to develop an opinion of the market value of a property.

[Goodpasture]

Originally Posted by Need to Relocate

Are appraisals alright or too low?

An appraisal should reflect an opinion of the market value of a property as of a specific date and time. If the market is declining the report should reflect that. If the market is increasing that too should be reported. If it is stable then that should be reported. A good appraisal, prepared by a competent appraiser, is never "too low" because it should reflect the value as of a specific date. It may be that the value opinion is below what you are expecting or hoping for, but that is the market talking, not the appraiser.

[Annemieke Roell]

I don't know what you mean by appraisals being too low? An appraisal should reflect the current situation of the market. Not higher .... not lower.

Southern Maine, pretty much being a suburb of Boston, should be pretty stable.

The best thing you can do is spend a few hundred dollars and hire an appraiser to do a market analysis for you.

[middle-aged mom]

Originally Posted by Goodpasture

Under no circumstances should a short sale or any other sale made under duress be used as a comparable to develop an opinion of the market value of a property.

Generally speaking this is true, however, sometimes the only comps are foreclosed properties.

[Goodpasture]

Originally Posted by middle-aged mom

Generally speaking this is true, however, sometimes the only comps are foreclosed properties.

True. In that case, foreclosures ARE the market, and investors are most likely the only buyers.

[bentlebee]

Originally Posted by Goodpasture

Under no circumstances should a short sale or any other sale made under duress be used as a comparable to develop an opinion of the market value of a property.

That is my opinion to but the appraiser for bank of america told me that is how they work. Last closings incl. no matter what the reason is for the sale.