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randella
Love my little man
Member since 8/05 16290 total posts
Name:
Randi
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Bank Appraisals
Has anyone had an issue with the bank appraising your property for less than an agreed upon price?
People are trying to put in low ball offers, saying that the bank may not approve a loan for an amount greater than X.
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Posted 5/24/10 7:09 PM  |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Bank Appraisals
Posted by randella
Has anyone had an issue with the bank appraising your property for less than an agreed upon price?
People are trying to put in low ball offers, saying that the bank may not approve a loan for an amount greater than X.
Happens all the time. If similarly sized houses in your neighborhood are selling for less, you can definitely have this happen.
Then you will wind up with a whiny buyer.
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| Posted 5/24/10 7:12 PM |
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alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
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Re: Bank Appraisals
it is happening all the time. I just had 2 friends have the house they were going to buy appraise less than the contract price and then a bank will not approve a mortgage for over the appraised value.
There have also been a few people on here post about it.
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| Posted 5/24/10 7:12 PM |
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Ma-n-Pa2008
Mommy's Big Boy
Member since 3/09 2584 total posts
Name:
Melissa
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Re: Bank Appraisals
this just happened to my friend last week!
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| Posted 5/24/10 7:51 PM |
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randella
Love my little man
Member since 8/05 16290 total posts
Name:
Randi
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Re: Bank Appraisals
So what happens-- you have to lower the price to accommodate the bank?
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| Posted 5/24/10 8:03 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Bank Appraisals
Posted by randella
So what happens-- you have to lower the price to accommodate the bank?
A buyer may expect you to do this, but it is not required. The buyer can put more money in their down payment to cover the difference and this is not an issue.
You can lower your price to appease the buyer.
Or you can find another buyer if you can't come to an agreement. Appraisals are merely opinions based on recent price sales. You could find another buyer who uses a different bank and their appraisal company may estimate the property is worth more.
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| Posted 5/24/10 8:21 PM |
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ruby
you rang?
Member since 6/08 5573 total posts
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Re: Bank Appraisals
Wait, are you in contract on your apt and the buyer already had their mortgage co. do the official appraisal? Or are they assuming/thinking that your apt will appraise for less than you're asking and thus trying to lowball you by telling you this?
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| Posted 5/24/10 8:32 PM |
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randella
Love my little man
Member since 8/05 16290 total posts
Name:
Randi
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Re: Bank Appraisals
Posted by ruby
Wait, are you in contract on your apt and the buyer already had their mortgage co. do the official appraisal? Or are they assuming/thinking that your apt will appraise for less than you're asking and thus trying to lowball you by telling you this?
yes-- we have an accepted offer, but someone else is probab;y going to put another offer in... and were concerned about going too "high" because of bank appraisals. We'd of course like to get more money.
Meanwhile we are not priced high AT ALL and every offer we have gotten is less than what our realtor said we'd sell for.
The house we are buying is less than we thought we'd spend, so we figured we take more of a loss here to just get it sold.
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| Posted 5/24/10 8:53 PM |
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Re: Bank Appraisals
Posted by ave1024
Posted by randella
So what happens-- you have to lower the price to accommodate the bank?
A buyer may expect you to do this, but it is not required. The buyer can put more money in their down payment to cover the difference and this is not an issue.
You can lower your price to appease the buyer.
Or you can find another buyer if you can't come to an agreement. Appraisals are merely opinions based on recent price sales. You could find another buyer who uses a different bank and their appraisal company may estimate the property is worth more.
This is not always true. The rules have changed. If the buyers lender is following FHA guildlines,(most are) the appraisal stays with the subject home for six months. Due to the past mortgage mess, you just can not get another appraisal for higher value. The subject home is tagged with a FHA number which stays with it for 6 months. Any other lender, which lends conventionally through FHA will see the appraisal on the subject house.
Usually what happens is the seller has to lower the price to the appraised value, or negotiate with the buyer. But the buyer is in the drivers seat. They can walk and you are stuck. If you find another buyer the old appraisal may show up.
Be pro-active and spend 300.00 to get an appraisal. The appraiser will ask you why. Tell him you want to know the true market value of your property. You are ready to go into contract and are nervous about the negotiated price. A good appraiser will not ask you for the contracted price.
Good Luck
Arthur
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| Posted 5/24/10 9:53 PM |
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randella
Love my little man
Member since 8/05 16290 total posts
Name:
Randi
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Re: Bank Appraisals
Posted by EXIT Realty Achieve
Be pro-active and spend 300.00 to get an appraisal. The appraiser will ask you why. Tell him you want to know the true market value of your property. You are ready to go into contract and are nervous about the negotiated price. A good appraiser will not ask you for the contracted price.
Good Luck
Arthur
So are you saying get a private appraisal? Will my buyer's bank honor that?
I know a bank's appraiser isn't always fair, and it's just one person's opinion based on comps-- even if you have done other things to add value to your home, specific location, etc.
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| Posted 5/25/10 7:44 AM |
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-Lisa-
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Member since 5/05 6530 total posts
Name:
Lisa
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Re: Bank Appraisals
Posted by randella
So are you saying get a private appraisal? Will my buyer's bank honor that?
I know a bank's appraiser isn't always fair, and it's just one person's opinion based on comps-- even if you have done other things to add value to your home, specific location, etc.
The buyers bank will not honor your private appraisal, but you would then have it in hand to show potential buyers that it CAN appraise at that value (doesn't guarantee that the buyers bank appraisal would come in at the same value).
If you're confident that there are comps that would support your value (and you're looking at your house and the comps objectively), you should be fine. If you want me to run a few comps, send me your MLS #, and I'll take a look to get a feel for what value *I* think is supported in your marketplace.
Posted by EXIT Realty Achieve
A good appraiser will not ask you for the contracted price.
I don't necessarily agree with that. I think its useful to know to contract price, and/or what the homeowner thinks the house is worth. Doesn't mean I'll agree with it, and it doesn't bias MY opinion, but sometimes I like to know their mindset and manage expectations.
Message edited 5/25/2010 8:11:47 AM.
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| Posted 5/25/10 7:54 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Bank Appraisals
Posted by EXIT Realty Achieve
This is not always true. The rules have changed. If the buyers lender is following FHA guildlines,(most are) the appraisal stays with the subject home for six months. Due to the past mortgage mess, you just can not get another appraisal for higher value. The subject home is tagged with a FHA number which stays with it for 6 months. Any other lender, which lends conventionally through FHA will see the appraisal on the subject house.
That doesn't make a difference. It's not like the first appraisal will get "glued" to the house. It's not like appraisal values are kept in a secret appraisal database somewhere. Unless I am mistaken?
It is very possible a second appraisal will generate a different value, and sometimes the value will be higher.
Usually what happens is the seller has to lower the price to the appraised value, or negotiate with the buyer. But the buyer is in the drivers seat.
The buyer is no further in the drivers seat as they were before the appraisal. How do you view the buyer is in the drivers seat here?
The seller can very easily decline to lower their price. A house is worth what somebody is willing to pay for it, not what a piece of paper appraisal says.
You are new here... but I can tell you by looking at some previous threads... MANY people get attached to houses. People can think a house (like say a wedding dress) is "the one". Again brings me to my point a house is worth what somebody is willing to pay for it. There are plenty of buyers that will either pay PMI or put more money down to get a house, without a seller having to lower their price.
They can walk and you are stuck. If you find another buyer the old appraisal may show up.
No you aren't stuck, the seller can easily find another buyer. If you have a nice house in a good area and are priced reasonably, the house will sell.
And I don't see how the previous appraisal will show up unless the new buyer uses the same bank with the same appraisal company (which I suppose is a possibility, but unlikely).
Be pro-active and spend 300.00 to get an appraisal. The appraiser will ask you why. Tell him you want to know the true market value of your property. You are ready to go into contract and are nervous about the negotiated price. A good appraiser will not ask you for the contracted price.
Good Luck
Arthur
This is silly and a waste of money. Why do this? So you get an idea of what your house is worth? That appraisal essentially means NOTHING.
You as a realtor should know that as a seller's agent, you are working for the seller and trying to get the MOST you can for your client. Getting an appraisal means nothing. What are you going to do with this appraisal? Show it to a prospective buyer? That is even worse as that lowers your negotiating position.
If you want to get an idea as to what your house is worth, look at the recent sales.
And in regards to a "good appraiser" not asking for the contract price. Come on. All appraisers ask for this as there is a small element of pressure to try to meet this.
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| Posted 5/25/10 1:45 PM |
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Re: Bank Appraisals
Yes I have had lots of trouble with this. i am a Mortgage Broker at PSP Home Funding Solution. Just the other day I had a 238k sale price and the appraisor brought the house in at 235k. it was only 3,000 dollars but that is 3,000 more that my client has to bring to closing.
There are some things that can be done to help get the appraised value legally but it ultimately it is up to the appraiser.
How far off was the appraisal you had done?
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| Posted 5/25/10 3:42 PM |
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scottf
LIF Zygote
Member since 5/10 28 total posts
Name:
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Re: Bank Appraisals
we just had our house appraised. it came in 2500 above the price agreed on but we were shocked becasue we thought it would appraise 15000 more. our realtor said because of the economy and appraisers jobs are on the line, they need to lowball the houses more tha ever as theres more of a chance for the bank to recoup their loss. in the end though by the appraisal point youve come to a conclusion to what the house worth because (hopefully) you researched and compared. the apprqisor is ust making his decision based on meaurement and a quick glance. our realtor said he was there 5 minutes and that most of her clients house appraise well below the agreed price but thats only a problem if u are putting down very little
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| Posted 5/26/10 12:21 PM |
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