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Well, I got my VA appraisal today. It came in $12500 less than the negotiated price. I would really like to get this house (its in great shape), but I don't want to overpay either.
Are VA appraisals generally conservative on their valuation? Is this a common problem with VA loans?
I wouldn't say they come in conservative. My guess would be the listing agent challenges it. But if it stands, you'll hopefully get your purchase price offset by the difference.
The appraiser should NOT technically care what kind of loan / lending program the buyer is using. In practice there may be trends with the same lenders using a small pool of appraisal firms and even with the "reforms" in putting distance between the lender and appraiser can't overcome the fact there are only so many people doing appraisals.
If the details of how the appraisal was made show no obvious errors and the comps the appraiser choose are legitimately similar there is not much to do. If there are errors or the comps are very much poorer than the subject property a review / new appraisal could be requested...
You have just gotten a second bite at the price offer apple.
Chew carefully and enjoy the savings.
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Unless the buyer doesn't *need* to sell they really have no choice but to eat this bad news.
No one is gonna come in with an offer even a penny higher than the appraisal until next year (if then).
In this situation there is not much hope of changing the appraisal.
Appraisers are not supposed to take input from any party in the deal and I think they are being held accountable these days which explains the conservative appraisals.
We had this exact situation as Buyers.
The appraisal came in Low.
We decided the home was worth more than the appraised value to us based on what we have seen sell over a year of looking.
The sellers were shocked and not willing to sell for the Appraised value.
We met in the middle and closed the deal.
We don't feel we over payed, but the fact we plan on staying in this home for 10 plus years helped us make our decision.
That is something you will need to determine for yourself.
You have just gotten a second bite at the price offer apple.
Chew carefully and enjoy the savings.
---
Unless the buyer doesn't *need* to sell they really have no choice but to eat this bad news.
No one is gonna come in with an offer even a penny higher than the appraisal until next year (if then).
This!!!!!!
Because even tho we loved the house.
And were originally willing to close at the agreed upon price.
The Low Appraisal ended up shaving 3% off the price for us.
So play it cool.
But don't let it get away if you really want it.
I wouldn't say they come in conservative. My guess would be the listing agent challenges it. But if it stands, you'll hopefully get your purchase price offset by the difference.
Ya that's exactly whats happening. Listing agent disagrees with the appraisers comps. She says appraiser comps are too far away (~1.5 miles) to count. Appraiser says his comps are better because they are recent (seller's comps are somewhat dated).
Ya that's exactly whats happening. Listing agent disagrees with the appraisers comps. She says appraiser comps are too far away (~1.5 miles) to count. Appraiser says his comps are better because they are recent (seller's comps are somewhat dated).
1.5mi does not seem excessive to find good comps, especially if they are more recent. I doubt the listing agent is going to win based on that argument.
As mentioned, you (or your agent if you have one) need to negotiate a price reduction if you don't want to kick in more $. The seller is in a bind as the next buyer will likely face the same issue.
1.5mi does not seem excessive to find good comps, especially if they are more recent. I doubt the listing agent is going to win based on that argument.
As mentioned, you (or your agent if you have one) need to negotiate a price reduction if you don't want to kick in more $. The seller is in a bind as the next buyer will likely face the same issue.
Is it possible the next buyer wouldn't have a problem if they were doing a conventional loan? In other words, would a normal appraiser take the VA appraisal seriously or take it with a grain of salt?
Is it possible the next buyer wouldn't have a problem if they were doing a conventional loan? In other words, would a normal appraiser take the VA appraisal seriously or take it with a grain of salt?
The appraisal for market value should be independent of the loan type, so if a buyer is using conventional, it wouldn't matter. The next appraiser also will not look at previous appraisals. So, the valuations should be similar unless their was some significant change in the market by the time the next buyer comes along, such as new comps that affect the value.
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