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Negotiate a price that both you and the sellers can live with. If the appraiser agrees, then the bank agrees, and everyone is happy. Remember, in this market, appraisers and lenders are VERY conservative.
Lenders may be, but under the regulations, undervaluing is just as illegal for appraisers to do as overvaluing is.
it always boggles my mind how some people think a $400 appraisal means their investment is "sound". Does he use his psychic powers to predict future market activity?
It's "sound" at the moment in time of the appraisal, depending on what "sound" means to you. It should mean that the value is reasonable compared to similar recent sales in the local marketplace. This may change over time. Appraisals don't predict future value, although there may be indication if historically, the market is declining or appreciating.
"Hitting the sales price" is illegal and any appraiser caught doing that should lose his/her license.
As far as the HVCC is concerned .... that is probably the worst thing that could have ever happened to borrowers. Lenders can't manipulate the appraisal? You know how many lenders own their own AMC?
YES, HITTING THE SALES PRICE!
Very peculiar don't you think? We are ordering appraisals via AMC and the contract price is $359,500 and the appraisal is coming in at........$356,000. I had one very unique property sell for 805K. Wanna guess the appraised value? 805K. I could go on with even more amazing examples and I can only say I am glad this is HVCC.
We have the oddball low appraisal, like when the contract adds in all closing to the listing price......or the out of touch agent that lists too high that has an out-of-the-area realtor write on that listing.............and everyone is shocked it came in low, yet the comps all along showed the listing was priced too high.
But yes, complete (appraiser) strangers, orders not handled by production staff, but a 3rd party AMC, with values hitting the number. LOL, Thank God for HVCC! But seriously, HVCC was the reward to the appraisers that did their job correctly (sarcasm). They complained and testified about lender pressure, yet in the end, got screwed themselves for their troubles. Hmmm, what's the lesson here?
Very peculiar don't you think? We are ordering appraisals via AMC and the contract price is $359,500 and the appraisal is coming in at........$356,000. I had one very unique property sell for 805K. Wanna guess the appraised value? 805K. I could go on with even more amazing examples and I can only say I am glad this is HVCC.
We have the oddball low appraisal, like when the contract adds in all closing to the listing price......or the out of touch agent that lists too high that has an out-of-the-area realtor write on that listing.............and everyone is shocked it came in low, yet the comps all along showed the listing was priced too high.
But yes, complete (appraiser) strangers, orders not handled by production staff, but a 3rd party AMC, with values hitting the number. LOL, Thank God for HVCC! But seriously, HVCC was the reward to the appraisers that did their job correctly (sarcasm). They complained and testified about lender pressure, yet in the end, got screwed themselves for their troubles. Hmmm, what's the lesson here?
Frequently it will happen that the appraisal comes in at the sales price, especially in subdivisions. And sometimes an appraisal will come in $3-$4,000 below the sales price and can't go any higher because that value is already at the high end.
If you feel appraisals are not done right, send them to your State's appraisal board and have them review the appraisal.
It's not my job and the bank would probably fire me on the spot if I decided to play appraisal cop, when they have underwriters to do that job. I'm sure those appraisals were fine.........the appraisers found a way to support their work with comps and the adjustments that were in line and explained..........but I would not one bit surprised if comps were overlooked in favor of others.
Of course,we will continue to have appraisals come in low while we absorb more short sales and foreclosures in our market. But low appraisals are no where nearly as frequent as we were seeing when HVCC first went live. Realtors have also become more adept at pricing resales in challenged neighborhoods or appraisers are doing the work to make the contracts fly, or a combination of both. but there are just too many oddball coincidences lately......and not just with our bank, my peers at other places are seeing the same.
Now that we have some time under our belt with HVCC and everyone is use to the process, I suspect, we now have the AMCs favoring the appraisers that submit work to support a contract sales price. The pressure is still there (I'm guessing), just not from the bank staff. Again, it's a perfect set up...... now lenders have deniability. I am one that has always thought HVCC really punished those that did their job right. The ones that abused the power of placing the order are long gone......running AMCs or Modification Shops, some even handling credit repair. Some days it feels like we've come full circle.
its not like the appraisal is some kind of exact science. We have had threads on here where multiple appraisals on the same house have come back with significant differences. And i imagine the more unique the property is the greater the differences might be.
Remember, in this market, appraisers and lenders are VERY conservative.
Personally, I would not lose a desired home for a few thousand dollars. There are some good reasons why you went to contract on this one. You want to live there?
My buyer and I are waiting on the appraisal. My agent has seen buyers walk over $500-$1000 unders.
My buyers were approved for the asking price, but offered lower. I accepted with no counter. They changed from FHA to conventional with 20% down to close QUICK.
I was told conventional appraisals are more friendly than FHA as far as "unders go".
With the assets my buyer has, a slip of the tongue of their agent, we know their financial ability. In our case I doubt the lender is conservative with this buyer. What the appraiser says is another thing.
Are appraisals "varying" depending on the type loan?
like FHA vs. conventional?
thanks.
No. Those of us who are professional appraisers use our education, experience and training to do that.
my agent said they have seen appraisals come in under as little as $500 and the appraiser knows the loan amount.
Do you have the data, etc. to be able to be that close, when you know the loan amount in advance? Someone else said it's not a science. Coming in under by $500 sounds like a science, a skill, but then you know that the appraiser knew the loan amount ahead of time.
No idea. What did you say that you think I'm agreeing with you on?
Originally Posted by manderly6 its not like the appraisal is some kind of exact science.
that is my opinion too.......
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