U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 05-12-2009, 07:58 AM
 
65 posts, read 258,984 times
Reputation: 38

Advertisements

Quote:
Originally Posted by love to shop View Post
While it is unfortunate for you, I am happy to see that some houses are not appraising at their sales price. To me, it is a sign that the system is working.

One buyer does not make a market and too often people make an emotional decision to buy a house rather than a business one - so I don't buy the argument that just because you got a buyer means that is the market price.
It's not really an argument, it's the definition of market value. The house was on the market for such a short period of time, so how would I know if others would be willing to pay the same price? I know that I would not sell it at the appraised value, so I'm definitely not a willing seller at that price. An appraisal is one person's opinion of value.

I could see not appraising at the sales price if warranted, but this appraisal is not even in the ballpark ... (not even in the ballpark of their initial offer before we even settled on a final price).
Rate this post positively Reply With Quote Quick reply to this message

 
Old 05-12-2009, 10:59 AM
 
Location: OK
2,765 posts, read 6,788,416 times
Reputation: 1946
Quote:
Originally Posted by AndrewSoss View Post
Or go to a new lender. It's pretty rare, for the reasons you stated about willing buyer, willing seller, arms length transaction, etc..for the appraisal on a purchase to not come in at the sales price. The appraiser would need a compelling reason to think that the buyer or the seller (buyer in this case) was either not acting rationally or was somehow in bed with the seller trying to defraud the lender.

Tell the buyer's to go to a new lender...new appraisal will likely solve the problem.
Sorry, but that dog don't hunt. Any buyer is free to pay whatever they want for a property .... a lender is only going to lend the amount of money that the market will bear. Just because a buyer is wiling to pay premium+ does not mean that this is the market.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-12-2009, 11:01 AM
 
Location: OK
2,765 posts, read 6,788,416 times
Reputation: 1946
Quote:
Originally Posted by newmom2007 View Post
I didn't say that the realtor did an appraisal, and I know she's not an appraiser. She looked at the comps (similar to what the appraiser did) and came to a different number. A number that - in her opinion - would get the house sold. The house generated immediate interest and had an offer within days of going on the market. So, I'm struggling with how this appraiser has such a different opinion on value. As I said, willing buyer and willing seller ....
Realtors and appraisers have two entirely different methods of pricing things. ANd as I said above ..... anybody can be willing to pay whatever they want for a property .... just because they are willing does not create a market.

You ought to hire your own appraiser and have a review done on that appraisal. In fact, I don't know where you are located but if it is in OK I'd be happy to review it for you free of charge.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-12-2009, 11:04 AM
 
Location: OK
2,765 posts, read 6,788,416 times
Reputation: 1946
Quote:
Originally Posted by newmom2007 View Post

I could see not appraising at the sales price if warranted, but this appraisal is not even in the ballpark ... (not even in the ballpark of their initial offer before we even settled on a final price).
Whose ballpark?

It is not the function of the appraisal to meet the buyer's offer.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-12-2009, 11:40 AM
 
Location: Pocono Mts.
9,483 posts, read 11,247,106 times
Reputation: 11422
market value and appraisal value aren't the same thing, but how good or bad the market is effects your appraisal value.

An appraiser isn't going to receive a commission on the sale of the home, so the way he comes to the value of the home isnt going to be the same as the real estate agent who comes up with the listing price.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-12-2009, 12:07 PM
 
Location: OK
2,765 posts, read 6,788,416 times
Reputation: 1946
Quote:
Originally Posted by poconoproud View Post
market value and appraisal value aren't the same thing, but how good or bad the market is effects your appraisal value.
.
Which, for sake of this discussion IS the market value.

Your other comment I fully agree with.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-12-2009, 08:11 PM
 
Location: Long Island
9,438 posts, read 20,228,962 times
Reputation: 5154
Quote:
Originally Posted by newmom2007 View Post
Hi,

We are currently under contract to sell our home. The appraiser for our buyer's lender has appraised our house at 10% less than the sales price. How is that even possible? And is there anything that can be done to prove that the house is worth more? It seems that the appraiser did not include the fact that our house has updated kitchens and bathrooms and is in a better location than his comp houses.
When was your appraisal done?
Regulations regarding appraiser assignments have changed effective May 1st and could possibly account for a potential lack of "location" adjustment.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-12-2009, 10:06 PM
 
Location: OK
2,765 posts, read 6,788,416 times
Reputation: 1946
Quote:
Originally Posted by Elke Mariotti View Post
When was your appraisal done?
Regulations regarding appraiser assignments have changed effective May 1st and could possibly account for a potential lack of "location" adjustment.
Good grief.

The changes effective May 1 pertain to how appraisals are ordered. They have nothing to do with appraisal practices and whether or not an adjustment needs to be made.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-12-2009, 10:56 PM
 
Location: Wyoming
9,729 posts, read 18,560,589 times
Reputation: 14670
I had that problem with the first home I purchased -- the appraisal came in just a little low. I went to another lender who got a different appraiser, and the problem was solved.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-13-2009, 04:28 AM
 
Location: Over the Rainbow...
5,963 posts, read 11,140,470 times
Reputation: 3151
Quote:
Originally Posted by newmom2007 View Post
Hi,

We are currently under contract to sell our home. The appraiser for our buyer's lender has appraised our house at 10% less than the sales price. How is that even possible? And is there anything that can be done to prove that the house is worth more? It seems that the appraiser did not include the fact that our house has updated kitchens and bathrooms and is in a better location than his comp houses. Such BS. Now this deal is probably going to fall apart because of one individual's opinion of value. Obviously my buyers did some research to determine what the house was worth. Otherwise they would not have agreed to the price. By the way, even their initial offer to us (which we countered) was at least 5% higher than what the appraiser says the house is worth. So, he's not even in the ballpark.

Ugh. This is so not worth the aggrevation.

This sounds similar to what happened to our neighbor. They have a very pretty log cabin home which after 2 months had a buyer. The buyer was going through IMO a questionable mortgage company that a few years back got into some trouble for duping people.

All was going well; the appraiser came out and when they got the report back they found he had the rooms listed as smaller then what they actually are and that the shed they had built reduced the price by $10,000 because it could be moved. They built a really nice log cabin shed to store things in several years ago. The mortgage company would not send out another appraiser.

Now here's the kicker: The 2 real estate agents (for buyer and seller) came up with this plan: They would forego $2500 of their commission and the buyer would kick in $2500 for this shed and they wanted our neighbor to kick in the other $2500 to total $10,000. Neighbor said "no way." So real estate guy asks the buyer can she kick in an extra $2500 and she said no. Our neighbors then took the home off the market and will relist it in 45 days.

Something is fishy with this and now I'm seeing your post about the 10%. I told the neighbors I would report this to the Real Estate Board but they feel it's useless.

Just wanted to share this....none of this makes sense to me. Best of luck to you.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top