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Old 01-25-2019, 05:52 AM
 
426 posts, read 375,463 times
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Quote:
Originally Posted by Persian Prince View Post
When comparables are being used to come up with an appraisal amount how old are the comparables usually, is there an amount of time they are not allowed to pass ? (Over 90 days etc.)
For most properties, lenders like comps within 6 months, they prefer comps within 3 months. They will accept up to 12 months, assuming you haven't ignored more recent comps.


For properties that are truly unique homes or in rural areas they can go back years, if necessary.
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Old 01-25-2019, 07:18 AM
 
4,156 posts, read 1,794,543 times
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Look, for an ordinary house in a big city like Houston, if it's priced at $225 (or whatever), that's probably pretty close to its true market value. We're not talking about something unusual here. It's just another smallish house in a big city.

And, just to repeat,

THE VALUE ASSIGNED FOR TAX PURPOSES IS NOT THE TRUE MARKET VALUE.
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Old 01-25-2019, 09:43 AM
 
Location: OK
2,735 posts, read 6,368,165 times
Reputation: 1880
Quote:
Originally Posted by Diana Holbrook View Post
Help us out and post examples with your evidence that they are too high? It would not be common for you to know what price a home has been appraised at. Where are you getting your information?

Do you mean assessed at? By the county or city for tax purpose? Those are usually far below or behind actual current market value. Because when they err the other way? Citizens do things like dump tea in the bay, or fail to re-elect County Assessors. I would NOT equate assessed value with the current fair market value.
Exactly. Assessed Value and Market Value are two entirely different things.
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Old 01-25-2019, 09:50 AM
 
Location: OK
2,735 posts, read 6,368,165 times
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Quote:
Originally Posted by thebigW View Post
For most properties, lenders like comps within 6 months, they prefer comps within 3 months. They will accept up to 12 months, assuming you haven't ignored more recent comps.


For properties that are truly unique homes or in rural areas they can go back years, if necessary.
It is not that simple.

FNMA will accept comparable sales over 12 months with an explanation. So does the VA.

The simplified explanation is that as an appraiser, we look for sales that are the most comparable to the Subject, as close in location as possible to the subject and sold as recently as possible.

If you are in a hot, fast moving, suburban or urban market that should not be a problem. If you are in a slow moving market this is not that simple.

In rural markets it frequently is not a matter of finding comparable sales, it can be a matter of finding sales, period. I remember doing an appraisal in a very rural county where there were THREE sales in the 2 YEARS prior to the effective date of the appraisal in the ENTIRE COUNTY.

There is a lot more to appraising real estate than meets the, untrained, eye.
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Old 01-25-2019, 11:24 AM
 
426 posts, read 375,463 times
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Quote:
Originally Posted by Annemieke Roell View Post
It is not that simple.

FNMA will accept comparable sales over 12 months with an explanation. So does the VA.

The simplified explanation is that as an appraiser, we look for sales that are the most comparable to the Subject, as close in location as possible to the subject and sold as recently as possible.

If you are in a hot, fast moving, suburban or urban market that should not be a problem. If you are in a slow moving market this is not that simple.

In rural markets it frequently is not a matter of finding comparable sales, it can be a matter of finding sales, period. I remember doing an appraisal in a very rural county where there were THREE sales in the 2 YEARS prior to the effective date of the appraisal in the ENTIRE COUNTY.

There is a lot more to appraising real estate than meets the, untrained, eye.
Umm... Isn't that pretty much what I said?
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Old 01-25-2019, 12:43 PM
 
Location: 5,400 feet
2,378 posts, read 2,396,492 times
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It's also been reported that 25-30% of home sales are cash, so appraisals likely wouldn't matter in those instances
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Old 01-25-2019, 01:34 PM
 
2,221 posts, read 523,428 times
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Quote:
Originally Posted by Persian Prince View Post
I’m looking at several listings on my local MLS and most of these homes are priced substantially higher than what they are actually worth or appraised at. When an offer does arrive at a price the Seller is aiming for, how do appraisals pass through to make that amount? Are some appraisers corrupt, where do they come up with these numbers
Through my experience as a buyer, it seems asking can be however much the seller can convince his or her REALTOR® to list the property for, but the (bank) appraisals determine how much the mortgage company is willing to lend. When I bought my property on a USDA Guaranteed loan via SunTrust, an appraiser looked at the property, then looked at 5-6 similar homes within a certain radius. Since there weren't that many 2 BD / 1 BA homes, a 3/1 and 3/2 were included with similar SF. I'm sure this helped me obtain 100% (102%) financing.
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Old 01-25-2019, 04:26 PM
 
17,160 posts, read 18,516,755 times
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Quote:
Originally Posted by Diana Holbrook View Post
Help us out and post examples with your evidence that they are too high? It would not be common for you to know what price a home has been appraised at. Where are you getting your information?

Do you mean assessed at? By the county or city for tax purpose? Those are usually far below or behind actual current market value. Because when they err the other way? Citizens do things like dump tea in the bay, or fail to re-elect County Assessors. I would NOT equate assessed value with the current fair market value.
Imo appraisals are pretty much bs anyway. They usually seem to come in right around the ....surprise surprise....list price or sometimes offer price or sometimes somewhere in between. But it’s usually somewhere where people “negotiate” or sometimes “walk in with equity (like you can magically do something with it)”. There are the appraisals came in low but that’s usually because the seller is on crack and thinks his stucco box is made of gold.

My house came in (laughably) appraised EXACTLY at my offer price. And my offer was made after the house was price dropped by 40k. It’s nothing more than a educated guess. Based on meaningless comps because not only are houses not really alike, even if they were identical there could be vast differences in their maintenance appearance and upgrades.

But in this world appraisals mean a lot to banks and sellers and buyers so everyone uses them as their “worth”. That’s just the way it is.


I guarantee you that if the buyer was paying cash for houses that “worth” would be a lot less.
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Old 01-25-2019, 04:32 PM
 
Location: Rochester, WA
4,403 posts, read 2,408,184 times
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I see them as slightly more valuable than BS, they are an educated third opinion that the price being paid is a reasonably defensible price they might likely be able to get back if things go south on them and they need to sell it again. In something as subjective as Real Estate value, that's as good as you're going to get.
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Old 01-25-2019, 04:38 PM
 
2,221 posts, read 523,428 times
Reputation: 2462
Quote:
Originally Posted by Electrician4you View Post
Imo appraisals are pretty much bs anyway. They usually seem to come in right around the ....surprise surprise....list price or sometimes offer price or sometimes somewhere in between. But it’s usually somewhere where people “negotiate” or sometimes “walk in with equity (like you can magically do something with it)”. There are the appraisals came in low but that’s usually because the seller is on crack and thinks his stucco box is made of gold.

My house came in (laughably) appraised EXACTLY at my offer price. And my offer was made after the house was price dropped by 40k. It’s nothing more than a educated guess. Based on meaningless comps because not only are houses not really alike, even if they were identical there could be vast differences in their maintenance appearance and upgrades.

But in this world appraisals mean a lot to banks and sellers and buyers so everyone uses them as their “worth”. That’s just the way it is.


I guarantee you that if the buyer was paying cash for houses that “worth” would be a lot less.
Bingo.

$800k now or "maybe" $900k if your buyer doesn't flake by the time financing goes through?
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