Appraisal was too low
missouribound
7 years ago
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7 years agomissouribound
7 years agoRelated Discussions
Amending or updating appraisal
Comments (4)We have a similar situation (also upgraded to geothermal after-the-fact), although we knew we wouldn't likely meet 80% LTV from the start. Initally, we set up our constr loan at the 80% and then we had a line of credit for the amount over that. So at closing, some of the final payments will actually be made from our perm financing. We locked last month on our permanent but jumbo mtg rates were bad versus setting up a 1st conforming (meeting FHA limits with 80 LTV) and then a 2nd fixed mtg. This also took us out of needing to worry about having another appraisal - exactly something we were also worried about, similar to your situation. We are very comfortable with our banker and he is always helpful with options. I would recommend dealing with over-budget sooner rather than later so you can adjust if need be. Ultra-cheap light fixtures can always be replaced next year! Good luck! P.S. frog hopper: yes, they do an appraisal before the build starts so that financing can be set up. They will utilize your plans, specs (detail of finishes) and a sworn construction statement and then come out to verify later that all work was completed according to the plans and specs. The appraiser sometimes does progress inspections for construction draws, also....See MoreLow appraisal-what to do?
Comments (9)It was definitely an appraisal, not a CMA. Our agent paid for it. She suggested it because of a home they sold where the contract price was about 50K more than the first appraisal. They paid for another appraisal that was still 20K less than the contract price. So they got nervous and suggested that we have one now to avoid that scenario. The reason that homes currently on the market were used was because of the lack of sold comps, I guess. We have a 2 story house, and there are more single story homes in than 2 story in our area. However, we don't agree with how the appraiser picked and chose between both sold comps and listed homes to justify her result. I told my agent it looks like circular reasoning. We are just listed, with no sales contract or offers. Apparently, with a signed contract, according to the appraiser, she could go up $20K, which is still 50K from our asking price. Single stories in our area are selling for $425-490. The biggest single story is 3100 sqft, and our house is 3500. Our lot is one of the biggest in the area. I understand that square footage on the second story is discounted but how can our house appraise less than a 2500 single story on a smaller lot? No one had mentioned that we were unrealistic about our price. In fact, our agents originally had said we could list a bit higher if we wanted to. We are 30K lower than another house of same floor plan, and 12K higher than a second house like ours. We had two agent's tours, and out of 40 agents only 2 commented on the price possibly being high. The rest rated the price as "good"....See MoreHouse on market for 3 days. Received 2 offers already!
Comments (35)Update: Thanks for the advice on seller financing. I was having trouble with my realtor and it clouded my vision. I took the house off the market. I am going to continue doing all the repairs, spending $3,000. a year. We got a fourth offer. She said it wasn't that great, and I didn't see it. (I think it was with seller financing.) You were right about the family. That night, I heard a bunch of people outside my home as I was trying to sleep. A man's voice said, "Stephenie, your house isn't selling. "125,000." It was so creepy! Thank God I didn't get into that mess! The agent was trying to control who I chose as an agent for the cabin I'd found. She also wasn't conveying my messages to the agents who had made offers. She kept trying to get all buddy buddy with me, and discussing inappropriate subjects. (Her daughter on meth and pregant with twins, her sex life, her grandchild that she has custody of because she was going into foster care...") I kept trying to get her to focus on the business of the sale and she would veer off. It's like she wanted a therapist or a friend. She said that the buyers who had made offers talked to the next door neighbors and they had nothing nice to say about me or my property. (He was intercepting them during showings.) I was worried that would happen. That's why I was moving, to get away from them. My mom said they may buy the REO cabin as an investment property. They could pay cash. They helped me buy this one, and are very happy with how it looks now. It was an eyesore when we bought it....See MoreLow appraisal
Comments (43)Wanted to update - we decided to put the home back on the market. It's been almost three weeks and we've had a lot of interest so far (four showings with one coming back). I think the holiday weekend was a flop (no showings around the fourth). Anyway, I called our counties assessors office to discuss the square footage issue. He looked into it and he realized that what the township has is incorrect. The appraiser that came out and gave us the low appraisal did NOT actually measure the home (he used the townships numbers and then fudged the numbers to make it match). How do I know this? First b/c I went out and measured the property myself and the assessor went out and measured the property again. Second, he used the exact same square footage that was listed with the township (which the assessor admitted was incorrect). There was another unit that had recently sold that was an end unit (much smaller then ours but listed with the township as a similar size) - he used that in the comps and had our footage being the exact same. So, in the end we did get a raw deal with that appraisal. It's probably too late to do anything about it now but I'm considering calling the lender and the appraisers management company to complain. Like I mentioned before, my husband was home when he did the appraisal and he kept saying the guy didn't measure anything (he was in and out of the property in less then 10 minutes). Sucks but now at least the county measurements will be right and hopefully the next appraiser will actually measure the place and give us a fair assessment. Thanks all for the advice and support - will let you all know when we get another offer ;)...See Moremaddielee
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