Home Did not Appraise!

By
Real Estate Agent with Keller Williams Properties Weston, FL

I had two transactions where homes would not appraise. Unfortunately, I did lose one buyer over this, even though, I informed them we might have an issue with the appraisal. What we did not expect the home/condo to appraise for 30K less than the contract price. The last REO that sold in the neighborhood sold for $55K. The appraiser gave us $3K more for our unit, in almost perfect condition, and was a regular sale. I do not know if the new appraisal law had any effect. this was an FHA loan. I also had another transaction, right after that one, where we submitted an offer, but I spoke with the listing agent about the price, and how we felt it might not appraise for our offer, which was less than the list price. He told me that he spoke with the seller and they will not budge from the list price. They felt since they where not a short sale or a bank owned property, they did not need to lower their price. OK, their agent needs to bring them down to reality, was my only thought. Why have the listing, if they are not motivated in selling?

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Groups:
Realtors®
Learn to be a Top Producing Listing Agent
Door Knocking, Walk Abouts and Other Neighborhood Experiences
Active Rain Newbies
Mike Ferry

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
1,391,119
Donna Harris
Donna Homes, PLR - Austin, TX
Realtor, CDPE & ASP - Hill Country Lakeway Austin

These appraisers need to get back to doing their job!

Jun 20, 2009 09:53 AM #1
Ambassador
1,011,076
Harry F. D'Elia
Precision Real Estate Inc. - Phoenix, AZ
Investor , Mentor, CSSN, Radio Coach, REOs, ABR

Was that a surprise for you? We need to unite to take back our industry. Too much Government involvement is not good in a free market

Jun 20, 2009 09:55 AM #2
Rainmaker
122,079
Jim Valentine
RE/MAX Realty Affiliates - Gardnerville, NV

We just had an appraisal on a short sale come in $3,000 under the sales price.  The short sale lender won't budge.  We got a copy of the appraisal and they used lousy comps with poor adjustments.  Can appeal, but it will take time and the home is going to sale.  We are woking on it but don't have a resolution yet.  Remember the days when the appraiser would call and tell you they weren't making the price - looking for comps, adjustments, or other factors that might help them with the value ... or you could agree the value wasn't there and not be broadsided suddenly a week later by a low appraisal.  They need to get back to reality instead of this fantasy world where they are protecting their jobs by taking no risk with their opinion of value - whatever it is.

Jun 20, 2009 10:13 AM #3
Rainer
15,305
John Palmisano
Keller Williams Properties Weston, FL - Weston, FL

Hi Donna, thank you for the comment. You are exactly right, appraisers need to get back in doing their jobs. The problem is they are being cut in pay, so what type of appraiser are we getting. he/She a newbie? Where are they coming from? Do they know they area where the property is located?

 

Hi Harry, thank you for the comment. I guess weare going from one extreme to another extreme, as far as appraisals are concerned. To me its not a free market issue, just dumb laws. If we where in a free market, why do we need so many addendum's and licenses. I am not disagreeing with you, but everything in this country is regulated to a point. Sometimes un-regulated and in some areas over regulated. There has to be a better way, than what we have now, as far as appraisals are concerned.

Jun 20, 2009 10:16 AM #4
Rainer
15,305
John Palmisano
Keller Williams Properties Weston, FL - Weston, FL

Jim, I had the same thing with a short sale, just a short while back. I could not believe the bank would not budge also for $3K. I agree with your point on the "Getting Back to Reality." Otherwise what use is the appraiser? They are suppose to be independent from everyone, that is why they get paid a fee upfront. Sounds like to me they are working for the banks.

Jun 20, 2009 10:20 AM #5
Ambassador
2,036,942
Todd Clark
Keller Williams Realty - Beaverton, OR
Broker - Beaverton, Oregon Real Estate Expert - (503) 524-9494

Once the appraisal came in and proved your price was correct, the seller needed to accept reality and lower the price or take it off the market until the market comes back enough that it will appraise for the price they want. (Sorry they had agents that didn't live in reality)

Todd Clark - www.LivingBeaverton.com

Sep 11, 2009 02:01 AM #6
Rainmaker
164,427
Christine McInerney
The McInerney Team with Realty Executives Associates - Knoxville, TN
The McInerney Team, Knoxville TN Homes For Sale

I agree with Todd.  We try to educate the sellers about the appraisal process at the listing appointment so they can see that overpricing can really make you lose out on the sale.

 

 

Oct 12, 2009 07:47 PM #7
Post a Comment
Spam prevention
Show All Comments
Rainer
15,305

John Palmisano

Ask me a question
*
*
*
Spam prevention