FHA Appraisal Came in too high on Short Sale

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Real Estate Agent with Allen Tate 183201

I have never had this problem, my poor sellers of this short sale(on market for a year)....we keep getting full price offers and when the bank sends out appraisers, they keep getting higher and higher values, which knocks out the offers and now the bank wants us to relist the property higher...any suggestions?  

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Ambassador
567,648
C Tann-Starr
Tann Starr & Associates, Inc. - Flushing, NY

You have certainly managed to capture my attention this morning (LOL). I may have to get a few people to take a look at this. Will link back in a few. Regards, C. :-)

Jun 01, 2009 05:55 AM #1
Rainmaker
1,089,610
Bryant Tutas
Bryant Tutas-Tutas Towne Realty, Inc - Poinciana, FL
Broker/REALTOR, Tutas Towne Realty, Inc

Melissa, If the property is priced right than you just have to fight the bank. Do a full blown analysis justifying the contrcat price and then do your best to get the bank to agree.

Jun 01, 2009 06:29 AM #2
Rainmaker
149,794
Jen Anderson
Exit By the Bay Realty - Chesapeake Beach, MD

I agree with Bryant.  Was the property listed higher to start with?  If its been on the market for a year, I imagine it started higher.  I have justified price with the bank by showing the price reductions, number of showings at the different prices and lack of offers at the higher prices.

Jun 01, 2009 06:41 AM #3
Ambassador
839,190
Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

I think Jen has it right. Fight the bank like BB says and justify your reasoning with facts. They deal in numbers and you need to show them to the bank.

Jun 01, 2009 06:44 AM #4
Rainmaker
1,035,058
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

This sounds extremely frustrating!  I'm not a realtor and have no clue what you should do, but I do find this very interesting.  It sounds like you are getting good advice, I hope you are able to help your sellers resolve this.

Jun 01, 2009 06:48 AM #5
Ambassador
567,648
C Tann-Starr
Tann Starr & Associates, Inc. - Flushing, NY

I'm with Connie, BB and Jen. Do you have any half mile radius comps of any other short sales in your targeted range that recently sold in the last six months? I understand the bank wanting to get as much back as they can, but I would hate to have to go through this several times because someone in loss mitigation is being greedy about the buyer's potential equity ROI rather then moving the home off of the books.

Jun 01, 2009 07:08 AM #6
Rainmaker
122,067
Jim Valentine
RE/MAX Realty Affiliates - Gardnerville, NV

Is it a true appraisal or a BPO?  Can you see it?  Last year I had a negotiator that told me that the BPO came in at $220,000.  I knew the agent from another office that did the BPO - it was $185k.  The negotiator was unrelenting and they foreclosed on the house.  They cried the sale at $191k.  Nobody bid.  Took it back and listed it at $175,000.  Is it any wonder they are losing money?  Had another that they turned down $200,000.  It is still on the market a year later at $159,000.  Just went pending - am anxious to see the actual sales price.  Though there seems to be improvement in many lenders, these are the stories that have caused such grief to sellers, real estate agents, and buyers in the last 18 months. 

Jun 01, 2009 08:19 AM #7
Rainmaker
313,393
Liz Loadholt
Liz Loadholt- AgentOwned Realty- Covering SC - Mount Pleasant, SC
Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC

Melissa --- I agree with Bryant, Connie & Jen -- show the bank the real #'s --- at least there is no emotion involved with this sale --- the bank deals in facts -- show them the facts. Good Luck.

Mama Liz's Signature

Jun 01, 2009 09:39 AM #8
Rainmaker
563,876
Mike Saunders
Lanier Partners - Athens, GA

Melissa - I can only second many of these comments. What was it listed for originally (and any reductions) that it didn't sell for?

Jun 01, 2009 10:59 AM #9
Anonymous
Anonymous
Melissa

Hey Everyone!

 

Thank you so much for helping me out on this...after we got the HUD rep. involved, they called me this morning and said they would accept 84% of the appraised value and the buyer came up to that to get the deal done, it had been listed for a year at start of 150k, we were down to 125k(a year later)...both appraisals were done in Feb 09' for $139, May 09' for $142, in a down market, sitting vacant, for over a year, makes sense huh? Anyhow...it went pending this morning...lets hope it closes smoothly at this point...thank you so much!!! 

Jun 01, 2009 11:07 AM #10
Rainmaker
1,225,086
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

Most of my appraisals and BPOs have been coming in less than the highest offer. So I have the opposite problem. However, I am finding that banks will take at least 90% of market on a short sale, so dig up those comps and present them.

sacramento agent

Jun 01, 2009 12:10 PM #11
Anonymous
Anonymous
Anonymous

Elizabeth, that's good to know. 82% is where I usually start. :-)

Melissa, that's great news. Wishing you the very best with your listing. :-)

Jun 01, 2009 12:40 PM #12
Ambassador
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C Tann-Starr
Tann Starr & Associates, Inc. - Flushing, NY

Awwwww. Server kicked me out. That's me up there on line #12. :-)

Jun 01, 2009 12:43 PM #13
Rainer
179,085
Erik Hitzelberger
RE/MAX Alliance - Louisville REALTOR-Luxury Homes - Louisville, KY
Louisville - Middletown Real Estate

Interesting discussion.  I'm glad to hear you were able to work something out.  Good luck getting to the closing table!

Jun 01, 2009 11:18 PM #14
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Rainmaker
129,509

Melissa Polce

Lake to Land, I've Got It Covered!
Let's Get Started, how can I help?
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