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He complains because the appraisal was more than the owners original asking price before concessions. He again does not understand that since the real estate bubble burst, that appraisers do not see the contract on the home, but following very narrow guidelines, appraise the true value of the home. Instead of being glad he got the home under it's value, he is angry it appraised at a higher price than he paid. Apparently he/she wanted to get a low ball appraisal and try to force the price down further and is angry that did not happen. As the lender told him, he got a big boost in his equity in the property.
A couple of things. First, Austin never had a "bubble" as neither did most of Texas. We stayed the course with typical 3-5% appreciation per year. Very steady.
Second, appraisers DO see the contracts. They want to know how many concessions, if any, are going to the buyer within the price. They cannot/will not do their report of the property without the contract in hand.
He again does not understand that since the real estate bubble burst, that appraisers do not see the contract on the home, but following very narrow guidelines, appraise the true value of the home....
It's a little hard to follow this post. Mostly I don't understand why the OP and her husband signed the contract if they weren't happy with it and if they were told it was not in their best interest. You don't just "hope for the best" with a purchase this large.
I mean, you have to be spectacularly naive to put in an offer and hope it appraises under what's in the contract so you can save money. If the house wasn't worth $190 sq ft, why make that bid?? Why didn't anyone check to make sure the repairs were specified in the contract before signing it? I don't care if the agent is your own mother -- you read the contract before you sign it and you get a second opinion if you had your doubts.
Welcome to the Austin Housing Market. Stressful right? Last year, before I purchased my home. We were running around everywhere . Making offers all over the place. Going against 20 people at a time. Going 10-15-20k over asking and losing. We finally lucked out and found a HUD foreclosure. The house needed 15k in repairs in order to be livable(toilets , floors, new AC, new water heater etc..... We offered the asking price and they accepted. The house appraised exactly for what they were asking... They also paid the closing costs! Your best bet is to buy New or Buy. Rent keeps going up and up. My neighbors rent for almost 400 dollars more than what my mortgage is..... Good Luck. Keep trying. Theres a lot of Californians moving here that pay cash for houses...
I can't stop laughing - I'm sorry. Let me explain.
I was going to post that I checked San Francisco last week. $778 per sq. ft. and median home price of $1,200,000 or something like that. Nice homes for $2,000,000 cash down and a $51,000 a month mortgage for 30 years.
OK, to make a long story longer, then I saw the photo of the $408K SF property. They CAN'T be serious. But they are. This is absurd.
Since your home appraised for MORE than the asking price, it's a DEAL.
Congratulations!
AWR
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