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Dr. Bob is Robert Hsiung, MD,
bob@dr-bob.orgShown: posts 1 to 3 of 3. This is the beginning of the thread.
Posted by garnet71 on April 27, 2009, at 18:50:56
I'm working on selling my house.
So back when I was in the mortgage business, most of the appraisals of homes (for refinances and purchases) conveyed inflated values. It was the norm.
One of ny neighbors, who works as a settlement contractor, told me they've recently cracked down on appraisers since the subprime mortgage crisis....
So back then, any appraiser would make the value the exact amount needed to make the deal work (or higher)...Since this changed, I'm wondering how it affects real estate transactions.
So if I were to put my home on the market for 20% higher than similar houses have (recently) sold in my neighborhood, and enter into a contractual agreement at that price, I'm thinking if the appraisal comes in lower than the sale price, the mortagage underwriter would require the borrower(s) to come up with a higher down payment--which can ruin a deal. Not sure how this has changed...
In effect, I'm concerned the appraised value (during the mortgage process) will come in lower than the sale price agreed upon. This is based on comparable sales of homes in my area I"ve consistently checked upon over the past year.
The value of a home is really what someone would purchase it for--as opposed to the appraised value (from a licensed R.E. appraiser). But I know how appraisals work--they have to go by recent sales, though adjustments are calculated; not as much weight, however, goes towards such adjustments.
So that's the issue. A house is worth what people are willing to pay for it, but an appraisal, given the recent variables, can mess up a deal..or so I am suspecting.
Any input would be appreciated! Real estate people, or if you've recently sold a home....Many thanks!!
Posted by Phillipa on April 27, 2009, at 22:49:46
In reply to Anyone work in real estate?(or have a sold home), posted by garnet71 on April 27, 2009, at 18:50:56
A few years ago before the real estate crash so to speak people would just pay more cash but we have a condo in Emerald Isle we've gone below appraisal value and no takers we're losing our butts on this. Gone from $259,000 down to 189 in last year. Things just aren't selling. North Carolina was doing well. It's a buyers market right now. True what you said if appraisal is less that asking price buyer must want the house and be willing to pay more cash. That's my understanding at least. Love Phillipa
Posted by Dinah on April 28, 2009, at 8:13:09
In reply to Anyone work in real estate?(or have a sold home), posted by garnet71 on April 27, 2009, at 18:50:56
If people are willing to pay more than what most houses are selling for, are there amenities that the other homes don't have? Wouldn't the appraiser adjust for those ameneties?
I always hated that practice. As a buyer, when I buy a home the appraiser is one of the team of people (along with the home inspector and title company) I expect to help protect me from making a bad decision. If that has changed, I'm very happy.
But I hope they aren't too dogmatic. Some houses are worth more than others, it's part of their job to be able to sort out the differences between comparable sales.
This is the end of the thread.
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