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That's akin to me saying that 2+2 = 4 and you saying no, 2+2 = 5, and then claiming that it is just a difference of opinion.
No, that's not it at all. The issue you raised earlier is simply your opinion, not a fact. You don't seem to be able to differentiate opinion from fact. You have one opinion. I have a different opinion. Just because you believe your opinion is correct doesn't make it a FACT.
No much to say really..mentioned in another thread, I managed to land a home, but it's my first time waiving my appraisal contingency. To say I am nervous would be understatement; back in Oct I lost a house because it under appraised by 26k (it was shady with the sqf and the appraiser nailed it hard for that). But I am still gunshy, and seeing people missing the mark still has me worried.
From what I can see, I think I will be OK. We got it at asking (no crazy xK over to win), and the comps seem to line up.
I don't understand why you can't use homes ina different city, even though the city is .1 miles away (as it would provide another comp or two), but it is what it is...
I'm trying not to over think it, but am hoping to hear some honest feedback from neutral parties. I really like this place, but I don't have much to cover a gap.. not to mention this is the first offer I have landed since Nov.. the market is beyond insane here; I don't want to lose this opportunity either, as it's just right for my family down the line.
We actually just got the report, sure enough, the home magically hit the mark at 290! So, last major hurdle down.. just gotta finish underwriting and we are set!
We actually just got the report, sure enough, the home magically hit the mark at 290! So, last major hurdle down.. just gotta finish underwriting and we are set!
Good for you. Hope all goes well the rest of the way. Congrats.
We actually just got the report, sure enough, the home magically hit the mark at 290! So, last major hurdle down.. just gotta finish underwriting and we are set!
Congratulations and thanks for coming back to let us know!
So the only reason why a decision can cost you thousands is because the appraiser won't appraise at contract price? Not, that maybe, you overpaid?
Therefore, you're ok with overpaying as long as it appraises and you can roll it into the loan?
Do you think maybe you're not prioritizing right things here? Shouldn't you care if you overpaid whether or not it appraises? It's going to cost you the same. The only thing different would be cash out of pocket.
Just because one appraiser says a house is worth $X that is not the end all and be all. It's just one person's opinion about the value of the home.
As a part of the appraisal process, the appraiser does get a copy of the contract. So, it's not a "blind" process. If i called 10 different appraisers and didn't hand any of them the contract, I'd probably get 10 fairly different reports/values back.
Quote:
Originally Posted by Chas863
No, that's not it at all. The issue you raised earlier is simply your opinion, not a fact. You don't seem to be able to differentiate opinion from fact. You have one opinion. I have a different opinion. Just because you believe your opinion is correct doesn't make it a FACT.
You're 100% right. If someone says "would you rather flush $3,000 or $6,000 down the toilet" and you say "I would rather flush $6,000 down the toilet" that is absolutely your opinion. This being said, some opinions are not backed by logic.
Quote:
Originally Posted by Divine_Madcat
We actually just got the report, sure enough, the home magically hit the mark at 290! So, last major hurdle down.. just gotta finish underwriting and we are set!
Just because one appraiser says a house is worth $X that is not the end all and be all. It's just one person's opinion about the value of the home.
Just wanted to add a few more thoughts to this post . . .
Once the sale closes it becomes a comp for future listings/sales and therefore influences the market value. If we think back to our 101 level business classes back in college we'll remember an item or service's market value is simply what most people are willing to pay for it. If there are multiple offers on a property and your offer is the best one then by definition you're paying above market value (unless all the offers are for the same amount and what wins the house are the terms of the offer). The question really becomes . . . how much higher? There is a bit of a herd mentality when it comes to real estate and once a sale closes and becomes a comp most people will take that as gospel and adjust expectations for market values accordingly.
Just wanted to add a few more thoughts to this post . . .
Once the sale closes it becomes a comp for future listings/sales and therefore influences the market value. If we think back to our 101 level business classes back in college we'll remember an item or service's market value is simply what most people are willing to pay for it. If there are multiple offers on a property and your offer is the best one then by definition you're paying above market value (unless all the offers are for the same amount and what wins the house are the terms of the offer). The question really becomes . . . how much higher? There is a bit of a herd mentality when it comes to real estate and once a sale closes and becomes a comp most people will take that as gospel and adjust expectations for market values accordingly.
And this shows how appraisals often lack objectivity and are HIGHLY influenced by the latest craze. As you said in your previous post "If i called 10 different appraisers and didn't hand any of them the contract, I'd probably get 10 fairly different reports/values back." Very, very true.
Yet people will take a closed sale as gospel value as if Moses had written it in stone, when in reality it often represents when two uninformed people meet... the first asking way more than the house is worth and the second agreeing to pay the asking price or more.
Appraisals are supposed to be a voice of reason which helps to moderate crazes and unwise purchase decisions, yet in reality they are just as subject to influence from the latest crazes and trends as are the typical 8th graders in choosing what to wear or how to style their hair.
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