appraisal fees and required revisits?
tommy_d44
4 years ago
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tommy_d44
4 years agoRelated Discussions
Crooked appraisal?
Comments (10)Man, times have changed. It used to be that a crooked appraisal meant the appraisal was too high. I think maybe you HAVE been redlined, although that term doesn't mean what it used to mean. It used to be a term connoting racist lending policies, now it means (or is supposed to, at least) that a lender has decided a given geographic area is too risky to do any more business than they are already doing in that area. If that same lender has the loan for the condo across the hall from you, and a bunch of others in the building or area, and they're losing money on them, they might perfectly reasonably say, "enough, no more!". Now, that they aren't being upfront about it and instead are manipulating the apprasial to get that result is another problem. Maybe its just that the appraisers are finally being honest about values after such a long time of giving inflated appraisals. That's probably not news you want to hear, but it is a possibility....See MoreSellers Unfazed by Reality (another deal's death by appraisal)
Comments (21)... DESERVE to be low-balled! By both you and the appraiser! What kind of hoser allows his family to live in a house with obvious (and CHEAPLY corrected) WIRING faults? And the FURNACE thing, WTF? I know of AHJs in the northeast that will DENY YOU A C.O. for such lack of major infrastructure! Throw in the shabby roof and it would require ALL my self-control to not be openly snide with such sellers! You "done good" to just remain civil. Perhaps these sellers hit the HELOC "ATM", but spent it on everything BUT the house?... like maybe... recreational chemicals? =:O Very odd situation... as noted above, you might be picking up this same house in a foreclosure auction, not too far in the future. Feel for ya inexplic... buying a home for your family to live in naturally gets more emotional than looking for an income property you'll never spend a single night in. Next time be working a few in parallel. Nothing wrong with that in a buyer's market. PS: Don't do the long letter thing anymore... casting pearls to swine. But DO tell us more about the seller's appearance, behaviors, nervous tics, etc. ;')...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 MorePlan appraisals for construction loan?
Comments (32)Appraisals are required by federal law if financing is involved. While the purchaser or homeowner pays for the appraisal, it is owned by the lender. It is designed and required in order to protect the lender. People completely misunderstand the relationship. The appraiser works for the lender, not the builder or the borrower. Rarely does a potential homeowner understand the appraisal process. Most realtors don't really understand it, either. There are lenders that don't understand it. New construction is a very risky form of lending. Lenders see you and your project as a risk. The cost to custom build is always higher than the cost to production build. The lender is just trying to protect itself. The law requires it. I sympathize with you. I have been on both sides of the issue. When I built my custom home, I brought more than 50% to the table. This reduced the lenders exposure and they were tripping over themselves to lend me money. If you are bring less money to the table, it becomes much more risky for the lender and they aren't as enthusiastic. Ideally, new construction will be compared to new construction. It is almost impossible to find a similar comparable that is new custom construction. The comparable must have been an arms length transaction (in the MLS or widely advertised and available if there is no MLS in the area). This means the appraiser will try to select the newest, most similar homes available. They must also be in close proximity to the subject proposed home. If you are in a rural area, the distances expand along with the closing time. Once a "most similar" is selected, it's features are compared to the subject property. The differences will be assigned monetary values based on data and experience. A final determination of valuation is made after at least three properties go through this process. Additional comparable properties can be added to support the valuation or to include some element of the proposed property. As a retired appraiser, all I can say is if you want to borrow money, you will have to go through a very confusing, frustrating and expensive process in order for someone to lend you money. If you didn't need someone to lend you money, you wouldn't need the financing. You could just pay cash. The more cash you bring to the process, the less the lender will require because you have reduced their risk....See MoreStax
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