San Antonio still overvalued... (Alamo, Terrell: fit in, homes, homebuyer) - Texas (TX) - Page 8 - City-Data Forum

kevcrawford · 01-09-2008, 10:02 AM

The comps support the appraisal. I know enough to know that appraisals are just a ballpark idea, but I also know that appraisers are being very tight with their appraisals now because the banks don't want to lend on something that's overvalued.

My point was that if you buy right, you can make money in any market. I found a good deal (and there are lots of them out there) and I bought it. The sellers could have gotten what it appraised for if they had listed it higher.

Right now, it's very rare for a house to appraise for more than the purchase price, because the appraisers are being to tight on everything. Normally it's right at the sales price. This is coming from doing approximately 30 transactions this year, ranging from $100,000 up to $1+ million.

firstclassflyer · 01-09-2008, 10:10 AM

So,we have a commercial lender saying one thing...and a realtor saying another.
One of you has to be incorrect. Care to guess who?

I'll give you my story- We recently paid cash for a home in August. I had it inspected and appraised (for my own peace of mind). It appraised at approx. 10K above what I paid. Did I think I had an extra 10K worth of equity? Not really.

texdav · 01-09-2008, 10:30 AM

I also had the experience of buying and elling a home. The value of the first was up 40% from what I paid for it. The catch was that the secind home probly also would have been much cheaper ;if I had bought it at same time. The only way you actually get ahead is if you are cashing out when high or moving to a poorer market.Considering that material cost went up during the boom and then skyrocketed after the gulfcoast hurricanes;the saving on a new home would not have been the same as without the hurricane from talking to builders I know. They how say we can probaly look to lowering material prices as the material sales Then of course the value of the dollar makes the issue even more are way down. Then of course the lowering value of the market makes the issue even more complicated as you have to compare what would a dollar have bought you then and now even tho not a home.

firstclassflyer · 01-09-2008, 10:32 AM

Quote:

Originally Posted by texdav

I also had the experience of buying and elling a home. The value of the first was up 40% from what I paid for it. The catch was that the secind home probly also would have been much cheaper ;if I had bought it at same time. The only way you actually get ahead is if you are cashing out when high or moving to a poorer market.Considering that material cost went up during the boom and then skyrocketed after the gulfcoast hurricanes;the saving on a new home would not have been the same as without the hurricane from talking to builders I know. They how say we can probaly look to lowering material prices as the material sales Then of course the value of the dollar makes the issue even more are way down. Then of course the lowering value of the market makes the issue even more complicated as you have to compare what would a dollar have bought you then and now even tho not a home.

What?

kevcrawford · 01-09-2008, 10:44 AM

Quote:

Originally Posted by firstclassflyer

So,we have a commercial lender saying one thing...and a realtor saying another.
One of you has to be incorrect. Care to guess who?

I'll give you my story- We recently paid cash for a home in August. I had it inspected and appraised (for my own peace of mind). It appraised at approx. 10K above what I paid. Did I think I had an extra 10K worth of equity? Not really.

Appraisals for a purchase via a bank/lender and general appraisals or for refi's are different. The ones for purchase always come in lower. For a general appraisal just to figure out what the market is worth, the appraiser is working for you and not the bank. They have a tendency to tell you what you want to hear in that case.

I'm not disagreeing with banker. It's apples vs oranges. However, I'm going to take my many, many transactions and first hand experience to go out on a limb and say I know what I'm doing. Especially when it comes to my personal purchases. Every single deal is different. I know when a property is overvalued, or when I can get it at a deal.

I have a pretty solid idea of market values vs appraisals. Otherwise, I'd be one of the hundreds of Realtors that's struggling to make a living.

It's kind of a stupid thing to be arguing about.

texdav · 01-09-2008, 11:32 AM

I think you both are just looking at it from your prospective. Personally have bought and sold. The only thing that mattered in the end is what it sold for at the time of sale. Then when you buy the next you wander what you could have bought the new home for at time you bought the first. In the end;if it helped you move up in housing and did better than other ways the money could have been invested your satisfied.I even had a second home that I cashed out on and it did much better than any other investments I made during same time span.But that may or may not be true in the coming years.

banker · 01-09-2008, 01:06 PM

Quote:

Originally Posted by texdav

The only thing that mattered in the end is what it sold for at the time of sale.

Exactly. Time of purchase/sale is the only point at which true value can be known.

CelesteDF · 01-20-2008, 09:50 AM

Quote:

Originally Posted by schertz1

Most decent homes in Mahncke Park are far more than 180k. They are also usually 2 or 3 bedrooms. With the river projects and the broadway coming you can expect that to increase. I live in Houston, but have a house in Mahncke Park. Since buying it in 1995, the value has more than tripled. I would let it rot before selling it for less than I think it is worth.

Quote:

Originally Posted by banker

As a banker I can tell you that most appraisals come in for slightly more than the sales price - it is a problem that gives many new home owners a false sense of reality for what equity they have. The price you paid is the value. ... The appraisal industry is in bed with the banks - I am in commercial lending - I know this. The value of your home can only be truly known when you sell it.

The house I just bought yesterday in Mahncke Park appraised last fall at $230K. The sellers actually believed their home was worth that much, so it sat on the market for 6 months. I finally got this good-condition 3/1 for $170 - what I thought was a relatively fair price... not a steal but didn't get taken either. Even though growth at Ft. Sam and River North development will have an impact on the area, I have no illusions that I'm going to make a mint on this house... it's just a nice place to live in a great neighborhood. Realism is settling in, even in the trendier areas.

BTW - if anyone is looking for a GREAT realtor/buyer's agent, who's been in the biz for 20 years, knows the SA market inside & out and is a real straight-shooter, no-BS kinda guy who really looks out for you through all the little details, send me a DM and I'll pass along his contact info.

firstclassflyer · 01-20-2008, 10:06 AM

So, it looks like "Schertz1" will be "letting it rot" because he probably believes that the house is worth more than it really is.

Congrats on your purchase, by the way.

schertz1 · 01-20-2008, 04:05 PM

As I said before, I would let it rot before selling at what I deem an unfair price. Some people may have conditions that will require them to compromise, not me. I lease it and it pays for itself. When that is no longer possible, I will either remodel and continue or demo and rebuild. When the market justifies new construction at 350k or more I will demo regardless. My hope is this happens inside five years.