Underwriting...explain to me please...

[StandsWithAFist]

Originally Posted by 123catlady

Obviously, I don't know their personal situation, other than the fact that they agreed to sell at their low of 187k. So I am guessing that the 187k is their break even, and that a better appraisal would have given them a little cash. Sucks for them, they put a lot of money into new floors and a kitchen.

I have bought and sold over 20 homes of my own, personal homes. I also buy investment property. (I am licensed, too.)

Posting this because I want you to think about this when you go to sell.

I have had some sorry, low-balled appraisals come back and buyers were just like you, expecting me to lower my price. I always CONTEST appraisals and provided my own comps.... and WIN my point on the appraisals every, single time! Appraisals are subjective... another person's opinion to QUESTION!

Furthermore, unobservant appraisers OFTEN do not take into account of the upgrades in homes. And I always provided a LIST of all of my 'upgrades', benefits, and unique characteristics about my property to any appraiser that viewed my home. AND if there is a problem with the appraisal, I reviewed the appraisal if it was not as I expected. I **know** my area and property's value.

Examples: I have had appraisers fail to provide credit for top of the line windows, i.e. triple paned, Low E, argon gas filled windows, radiant barrier installed in the entire house... not just the roof, travertine not vinyl or "ceramic" tile, wood floors Vs "carpet and vinyl" as their report reflected, and top of the line appliances. I have had one appraisal completely leave out the fact that I had a dual fuel , 48" Thermador range which cost over $11,000~! Another did not credit my garage door. All he had was a check that I had a garage door. Really? I had an over-sized 18' x 8', fully insulated, hurricane resistant, carriage house styled garage doors with all of the decorative hardware! This door cost almost four times the cost of a "regular" garage door.

Furthermore, finding comps that are not in similar areas, i.e. using houses in agriculture areas Vs similar homes in an HOA/CDD area. Using "builder tract" home comparisons when my homes are typically CUSTOM from the get-go.

Most of my homes in the past ten years have all gone ABOVE market value... setting new standards for the area. The key is having someone willing to pay you what you want... and it only takes ONE person to do that... and them having the cash money to buy your home.

We all know that there are some lenders that will NOT let buyer's go into a house with negative equity. (I would not let one of my children buy a house with this scenario.) So, you just have to find the right buyer.

As for me, I would not lower my price on a home. I do my research and stand my ground. As a seller, you need to protect your investment or you can 'lose' like these sellers did.

I'd say you had a good contract written and a great agent.

[SmartMoney]

Your lender must send you the new RESPA docs with the amended sales price to you at least 3 days prior to closing if they don't obtain your signature on them. If you sign and return them by fax or email, it only needs to be 48 hours prior to close.

However, if your lock changes and your APR goes up by more than .125%, you're back to 3 full days of waiting.

When does your lock expire? Rates have really climbed.

[123catlady]

Originally Posted by StandsWithAFist

I have bought and sold over 20 homes of my own, personal homes. I also buy investment property. (I am licensed, too.)

Posting this because I want you to think about this when you go to sell.

I have had some sorry, low-balled appraisals come back and buyers were just like you, expecting me to lower my price. I always CONTEST appraisals and provided my own comps.... and WIN my point on the appraisals every, single time! Appraisals are subjective... another person's opinion to QUESTION!

Furthermore, unobservant appraisers OFTEN do not take into account of the upgrades in homes. And I always provided a LIST of all of my 'upgrades', benefits, and unique characteristics about my property to any appraiser that viewed my home. AND if there is a problem with the appraisal, I reviewed the appraisal if it was not as I expected. I **know** my area and property's value.

Examples: I have had appraisers fail to provide credit for top of the line windows, i.e. triple paned, Low E, argon gas filled windows, radiant barrier installed in the entire house... not just the roof, travertine not vinyl or "ceramic" tile, wood floors Vs "carpet and vinyl" as their report reflected, and top of the line appliances. I have had one appraisal completely leave out the fact that I had a dual fuel , 48" Thermador range which cost over $11,000~! Another did not credit my garage door. All he had was a check that I had a garage door. Really? I had an over-sized 18' x 8', fully insulated, hurricane resistant, carriage house styled garage doors with all of the decorative hardware! This door cost almost four times the cost of a "regular" garage door.

Furthermore, finding comps that are not in similar areas, i.e. using houses in agriculture areas Vs similar homes in an HOA/CDD area. Using "builder tract" home comparisons when my homes are typically CUSTOM from the get-go.

Most of my homes in the past ten years have all gone ABOVE market value... setting new standards for the area. The key is having someone willing to pay you what you want... and it only takes ONE person to do that... and them having the cash money to buy your home.

We all know that there are some lenders that will NOT let buyer's go into a house with negative equity. (I would not let one of my children buy a house with this scenario.) So, you just have to find the right buyer.

As for me, I would not lower my price on a home. I do my research and stand my ground. As a seller, you need to protect your investment or you can 'lose' like these sellers did.

I'd say you had a good contract written and a great agent.

Thanks! I agree with you. I wasn't pleased with the appraisal, luckily it benifited us a few thousand.

I wanted to point out though that,

I have had some sorry, low-balled appraisals come back and buyers were just like you, expecting me to lower my price.

this does not describe us. I fully expected the house to come in at appraisal or a little above. We have been looking in this market and know what else is out there. If sellers would have stuck to their price we would have paid the difference in cash.

And yes, I think we do have good realtors and a good contract. Just wish the sellers would abide by dates...they delay...everything.

Your lender must send you the new RESPA docs with the amended sales price to you at least 3 days prior to closing if they don't obtain your signature on them. If you sign and return them by fax or email, it only needs to be 48 hours prior to close.

Got this done last week...actually almost two weeks ago...just one of many things the sellers delayed on...

Hopefully, we are signing this afternoon or early tomorrow morning. Sellers are hoping to hold out over another weekend. I don't get why they agree to dates and then don't honor them!?