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Shopping for high appraisals is not the answer here.
Is it possible to get the seller to take a second lien (note) for the difference? If you still want to pay over the appraised market value, it looks like this might be an option.
I like the ideas in the second half of your post A LOT. I suspect that if more people thought this way more of the deals would get done.
The simple fact is that the amount OVER what the lenders appraiser came up with is exactly the kind of thing that the SELLER should be willing to take a bit of risk on. And the buyer SHOULD be able to convince that this is a risk worth taking...
{not so sure I follow all of ETex's thinking on depreciation, but that is not the key to why these kinds of deals get killed -- using seller financing for A PART of the transaction removes the LENDER as the impediment to the deal and ought to get BOTH sides to a more "winning" position. Of course such seller financing might not be ideal if the seller NEEDED every last cent to either pay off the place [enter the role of other lenders] OR to buy another place, but hey CLOSER is always better in my book}
The basement is considered a terrace level basement. 1/2 is at ground level, rest built back into land. Fully finished w/ hard wood floors, stone fireplace and built in's in solid Cherry cabinetry. Two large french doors which open onto patio. 1000 sq. feet total. Also large BR and full bath. I really do understand that basement's should not be counted as living space, but this really seems unrealistic to me. Should this be considered differently?
I would say there is contributory value, yes. Especially is this type of basement is common in your market.
Replacement cost and market value seldom are the same. Just because I spend $50,000 on a new pool a few years ago, does that mean that's what it's worth today? Nope. The difference between cost and value is a term called DEPRECIATION.
Its contributory value wouldn't even be $50,000 the day after you put it in
Two appraisals at around the same price. It seems to be a no brainer to me..as a buyer I'd walk. The seller now knows what the general value of the home is based on the appraisals. So now the seller will have to hold out for someone willing to pay more than what it's worth.
And the banks say the appraiser is the final say..they will not loan more than 80% of that value.
Never happpened. YOu got the first appraisal and someone confirmed it. Under the circumstances listed the most statistically unlikely thing possible would be two appraisals to the same amount.
So we got the classical problem. We have a confirmed appraisal containing obvious and substantial error.
If you want the house and you think your original offer was reasonable figure out how to pay it.
An idiot appraisal does not change the value. It merely officially obscures it.
YOu and spouse will hate yourselves for years if you buy something else that is not as nice.
It just ain't a big deal in the overall scheme of things.
Never happpened. YOu got the first appraisal and someone confirmed it. Under the circumstances listed the most statistically unlikely thing possible would be two appraisals to the same amount.
So we got the classical problem. We have a confirmed appraisal containing obvious and substantial error.
If you want the house and you think your original offer was reasonable figure out how to pay it.
An idiot appraisal does not change the value. It merely officially obscures it.
YOu and spouse will hate yourselves for years if you buy something else that is not as nice.
It just ain't a big deal in the overall scheme of things.
And this is idiot apprasing...
I didn't get any appraisal...I was repeating what the OP posted..she got two different appraisals that came in similar and both were below the selling price. I'm not the OP.
I didn't get any appraisal...I was repeating what the OP posted..she got two different appraisals that came in similar and both were below the selling price. I'm not the OP.
I know you are not. The point was that the OP got confirmation of the first number. NOt a second appraisal. Given the situation no two appraisals woudl come out the same. Maybe close...but not the same.
Nw go read it again...knowing that all understand your role.
I know you are not. The point was that the OP got confirmation of the first number. NOt a second appraisal. Given the situation no two appraisals woudl come out the same. Maybe close...but not the same.
Nw go read it again...knowing that all understand your role.
I must have missed where there it was stated there wasn't a "second appraisal">
I must have missed where there it was stated there wasn't a "second appraisal">
This is a reasonable complex house. If two appraisals come out the same the second used the first or you someone should have made a big bid on the lotter.. Appraisal is a range process. If they exactly agree someone cheated.
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Why wouldn't they come out the same?
Complex house. Number of judgement calls. This guy clained a floor half at ground level was worthless. Improbable that two appraisers would be that dumb.
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And what is "idiot appraising"?
When you declare finished space half at ground level is worthless. Or miss a bedroom. That is idiot appraising.
Note that a non-idiot appraiser would not that the lower floor existed and would state why he considered it valueless. It would still however be an alomst impossible case to make.
When you declare finished space half at ground level is worthless. Or miss a bedroom. That is idiot appraising.
Note that a non-idiot appraiser would not that the lower floor existed and would state why he considered it valueless. It would still however be an alomst impossible case to make.
I am going to make an assumption that you are a realtor which makes you calling an appraiser an idiot the pot calling the kettle black.
Now that we have that out of the way, if the appraiser measured according to ANSI Standards he/she did it right and was allowed to use his/her judgment to count it or not.
As far as the bedroom count goes .... frequently people use a room without egress as a bedroom, but without egress a room cannot be considered a bedroom.
I am going to make an assumption that you are a realtor which makes you calling an appraiser an idiot the pot calling the kettle black.
Now that we have that out of the way, if the appraiser measured according to ANSI Standards he/she did it right and was allowed to use his/her judgment to count it or not.
As far as the bedroom count goes .... frequently people use a room without egress as a bedroom, but without egress a room cannot be considered a bedroom.
Actually by training and adult livelihood I am an engineer. That is why I suffer fools badly. I retired after 33 years and took up RE as my wife's hobby. Late in my career I ran and had major responsibility defining ANSI standards. I would be glad to defend my credientials against yours.
Get it through your head. Idiocy is idioncy whether sanctioned by standards or not.
Only a fool would suggest a floor, fullly finished, with a walk out capability is valueless. Save the stupid it is "legal" for the lawyers. Engineers prefer rational arguments.
If I judge by the set here that is not true of Appraisers. I would however point out that the local leadership around Vegas seems rational. They are easily spooked...perhaps the earmark of all those who make their living on a government handout.
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