What Happens if my House Doesn’t Appraise for the Full Price?

By
Real Estate Agent with Keller Williams Realty CalBRE #01492138

 

What Happens if my House Doesn’t Appraise for the Full Price?

 

This is a very common question I hear a lot from sellers and buyers too. So here is the situation. The offer comes in for the full price and the seller is happy and accepts it. The escrow company begins their job and the agents get all the disclosures ready for signatures. The home inspection is completed by the buyers and everything is proceeding smoothly. Then the mortgage lender sends the appraiser out…….and this is where things get shaky.

 

How did the seller’s agent come up with the selling price? First the agent went through the subject home and looked at the entire place; inside and out and considered any upgrades, necessary repairs, the entire appearance, the neighborhood and the location. Then the agent looks at all the homes that have sold within a ½ mile radius if possible or out to 1 mile if none closer. If there are several comps, the agent will consider if they are better, less or equal to the subject home. The agent will then look at homes in the same area that are for sale to see what price they are selling for. A home for sale is not always a good comp as it can just be overpriced and not reflective of the true marketable price.  At the listing appointment, your agent will give you this information and a suitable price is arrived at. This will be your asking price.

 

What if my house doesn't appraise for the full priceHow does the appraiser come up with the selling price? Now, the appraiser comes out after the home is in escrow and takes pictures, measures the home and the lot, considers remodeling upgrades and also looks at the neighborhood and the location. Appraisers strongly consider sold comps in the area as well but the entire process is much more scientific. Appraisers go to school to get certified and use software to assist by plugging in numbers and it is a more calculated process. When this process is all done, the appraiser presents a 25-30 page report. This report considers nearby sold homes within the past 3 months, pending sales, and listed homes (actives).

 

Other factors the appraiser considers. They consider what type of loan the buyer is getting. The reason is that each loan has its own requirements for approving and funding the loan. A Conventional loan tends to get approved with few repairs or none. FHA and VA loans have stricter regulations so there are typically some repairs required.

 

What if my house doesn't appraise for the full priceSo let us consider that the price comes in less. There are 3-4 options here: 1) Reduce the selling price to the appraised price 2) Appeal the appraisal 3) Cancel the contract.

 

The first option is the easiest one; reduce the selling price to the appraised price and proceed and close the contract. But the seller may not be willing to do this and if this is the case, option 2 or 3 can apply.

 

The second option is that the appraisal can be appealed but you must have strong facts, sometimes there is a $150 fee and it has to be paid up front, and no one can be sure the appraiser will change their price after reviewing the facts. I have known of at least 10 appeals and only once did the appraiser agree to change the price.

 

Third option is for the seller to cancel the contract and either hope for a new buyer or will decide not to sell and remove the home off the market. This is where it becomes complicated. If the appraisal was for a FHA loan, this appraised price will stand for 6 months. So if the seller is hoping for a new buyer, it will have to be a Conventional loan only to get his/her full price.

 

There is a fourth option here sometimes! All monies have to go through escrow so there is no passing money behind the scenes from buyer to seller. But if the buyer really wants the home and the seller will not budge, then sometimes the bank will allow the buyer to pay the extra money to the seller through the escrow company. This has to be approved by the Under Writer who has the final say on approving the loan.

 What if my house doesn't appraise for the full price

 

Things to do:

 

1.    Make sure the home looks as nice as possible when the appraiser comes.

 

2.   Prepare a list of any remodeling done, any upgrades and newly purchased appliances. This list can be given to the appraiser by your agent at the time of the appointment.

 

3.   Be sure you have taken care of all repairs necessary and laws can vary from state to state but in California you must:  A) Have your water heater double strapped.   B) Have smoke detectors in all bedrooms, top of stairs, and downstairs too.  3) Carbon Monoxide detectors are now required; 1 upstairs and 1 downstairs.  (Appraisers are looking for these items as they are mandatory so make it easy on yourself and do it prior to inspection)

4.  Make sure your perception of your home is accurate. Sometimes a seller thinks they are right about the list price and the Realtor is wrong. Then when the offers and the appraisal come in low, only then the seller understands they were seeing an inflated price.

 

 What if my house doesn't appraise for the full price

 

Summary: Your Realtor is there to assist you through this entire process and can explain in detail what to do and what is occurring. Most of these situations are resolvable and many appraise at full price.

 

*I had 4 appraisals done in the last four months and two appraised for full price and the other two each came in at $5,000 less than contract price. The reason given for both was the location of the home and this is something we can’t change. Sometimes the appraiser considers factors that we did not and therefore must go along with the report. Usually the seller will agree to change to the reduced price.

 

 

 

This is usually a stressful time and takes 3-5 days for the report. Let your Realtor do the worrying for you and this is when you should start packing.

 

I sell real estate in Riverside and San Bernardino Counties; Redlands, Loma Linda, Highland, Colton, Yucaipa, San Bernardino and other cites too. If you are looking for a professional and experienced agent, I am just a click away. Google me at Kristin Hamilton-Real Estate Agent. Homeowners and Buyers both will find my services top notch and successful. Call me to sell your home.

 

I am waiting for your call! 909-557-6966.

 

This post was authored and or picture was taken by Kristin Hamilton. ©2012, All Rights Reserved, This content may not be reproduced or reprinted (Except for ActiveRain Re-blogging) without express written permission of Kristin Hamilton, Keller Williams Realty, Redlands, CA.

 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Charles Stallions 01/04/2013 10:06 PM
  2. Joy Daniels 02/03/2013 06:09 PM
Topic:
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Location:
California San Bernardino County Loma Linda
Groups:
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Ambassador
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Toni Weidman
Re/Max Sunset Realty - Trinity, FL
23 Years Selling Homes in New Port Richey, FL

Good information for buyers and sellers about the appraisal process, Kristin.

May 28, 2012 11:13 AM #1
Ambassador
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Toni,

Thanks so much for stopping and commenting. I appreciate your compliment. Have a great holiday weekend.

May 28, 2012 11:27 AM #2
Rainer
428,210
Bill Reddington
Re/max Southern Realty - Destin, FL
Destin Florida Real Estate

This situation will come up alot as the market starts to improve. Just lost one when the appraisal was $20,000 less then contract. Property will go off the market. Good Luck next time

May 28, 2012 01:05 PM #3
Rainmaker
573,676
Gary Frimann
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
California Broker and REALTOR

If it appraises low, and the market is tight, the seller can also carry a small note if the lender approves and the buyer REALLY wants the home.

May 28, 2012 01:12 PM #4
Rainmaker
225,316
Pamela Smith
Long Realty West Valley - Sun City West, AZ
Sun City West, Corte Bella, Sun City Grand

Kristin,

Thank you for sharing the insightful information.  It will be valuable to everyone.

May 28, 2012 01:21 PM #5
Rainmaker
193,200
Carla Harbert
www.LorainCountyHomeSales.com - Avon, OH
RE/MAX Omega: Lorain-Medina County Area

Appraisal issues are happening here in our Ohio area of Lorain, Medina County. I have been fortunate enough to only have one that has ruined a deal - when buyer & seller could not make it work over a low appraisal.

May 28, 2012 01:25 PM #6
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Bill,

I have just had this happen over $5,000 and the seller owned the house outright but just thought they were right and the appraiser and "I" were both wrong. I had been fighting them for 5 months to go lower and lower but we were trailing the market and never at a good price until the end. Of course the appraiser saw things differently. Oh well....I was frustrated but business goes on.

May 28, 2012 01:35 PM #7
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Gary,

Yes that is allowed sometimes but I have found most UW's do not approve it. But it is always something to look into when this arises.

Have a great weekend.

May 28, 2012 01:39 PM #8
Rainmaker
465,568
Gay E. Rosen
Houlihan Lawrence - Larchmont, NY
Honest, Hardworking and always Professional!

Hi Kristin -  Nice detailed info.. When I place bids nowadays, I state that the property must appraise or seller must offset the differential so  no back and forth if it should happen.. This way, my buyers are satisfied before moving forward.

 

May 28, 2012 01:42 PM #9
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Pamela,

Thanks so much for stopping by and commenting. I hope it answers many seller's questions as it can be so confusing.

Have a great Memorial Day.

May 28, 2012 01:45 PM #10
Ambassador
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Gay,

The banks are doing this too on short sales and foreclosures as they are tired of getting inflated prices knowing the home will never appraise. I see both sides of the coin as buyer's agents feel they always get beat out but the sellers/banks are tired of dealing with low appraisals with high contract prices.

Have a great Memorial Day.

May 28, 2012 01:48 PM #11
Rainmaker
558,623
Gretchen & Mel Ahrens
ColumbiaGorgeFSBO.com - Hood River, OR

I remember "back in the day" where an agent/seller basically told the appraiser where they needed the house to appraise at and the appraiser made it happen. Maybe this is a clue as to the mess the housing industry eventually found itself in? Good post, simplifying the process for folks.

Gretchen

May 28, 2012 01:52 PM #12
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Carla,

 Very sorry for your lose too. I have only had it happen once also as I am pretty good at pricing homes but sometimes you just cannot convince the seller and the buyer's agents know if their client offers full price, it will not appraise so usually the seller agrees to reduce especially if it is only a small amount. My seller was upset about the closing costs they were asked to pay as the appraiser does not consider the additional fees tacked on. I guess only once is lucky but it is hard when you have worked hard and the buyers really want the house. I remember talking with the buyer's agent several times as we tried to resolve it but it never happened.

Have a great Memorial Day.

May 28, 2012 01:54 PM #13
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Gretchen,

 Yes I remember that too and you are so right. I think it was one of the big problems. I think appraisers do a good job and my post was certainly not any criticism to them at all. I respect their hard work and dedication but sometimes I just see things a little different than they do...like $5000 different.

One of my friends just had one appraise $45,000 less that the asking price...OMG! Somehow they resolved it though.

Have a great Memorial Day.

May 28, 2012 01:59 PM #14
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Frank Rubi
Frank Rubi Real Estate, LLC. - Metairie, LA
Homes for Sale Kenner - Metairie, La.

Kristin, we are on the buyers side. We are face with the issue of the appraisal not coming in. The appraiser been working on the subject for over a week. This post provides a good insight on appraisal issues. 

May 28, 2012 03:52 PM #15
Rainmaker
478,344
Robert L. Brown
www.mrbrownsellsgr.com - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Michigan

I've never had this happen to me but I've heard of it before. Not a good situation to be in. I would assume more likely the seller will reduce the price as they dont want to hedge their bet on waiting for another offer to come thru.

May 28, 2012 03:57 PM #16
Rainmaker
284,722
Jerry Murphy
Long Real Estate - Anthem, AZ
Anthem AZ Real Estate

This is becoming a big issue in our market as homes are selling lot hot cakes, sometimes above list price.  The appraisals have not yet caught up with the market.  In my past expericence I've challenged 3 appraisals and was successful on one.  On the other two that did not appraise for the agreed upon price one buyer agreed to come out of pocket with the difference and the seller on the other transaction agreed to drop the price.  So all was well that ended well in all of these instances.  Great post and best of luck to you Kristin.

May 28, 2012 04:22 PM #17
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Frank,

 I am glad this post came at the right time but I am sorry your buyers property did not appraise as it can be a real problem and sometimes never works out. I will keep my fingers crossed that you find a workable solution. Believe me when I say I have been there more than once but usually resolvable.

Happy Memorial Day.

May 28, 2012 04:37 PM #18
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Robert,

First of all let me say good luck to you that you have never been in this situation as it is not fun. But yes you summed it up pretty good. It is typically resolved by the seller reducing the price. Sometimes the anger just gets in the way and they just do not see clearly. Usually it works out.

Happy Memorial Day.

May 28, 2012 04:39 PM #19
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Jerry,

 So glad to hear that all of your problem appraisals have worked out. I have had 5 over the years and 3 of them the seller agreed to reduce the price, 1 we won the appeal for the higher price and then 1 the seller refused to proceed and removed the property off the market. I tried to resolve the last one but I finally had to give up and let it go.

Happy Memorial Day.

May 28, 2012 04:44 PM #20
Rainmaker
535,308
Morgan Evans
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

When the property doesn't appraise at the initial value, it's always important to understand that there are multiple ways to handle it.  Being able to work through it and find a solution that is agreeable to all parties is the key to the transaction.

May 28, 2012 04:46 PM #21
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Morgan,

Yes that is what we need to do to find a solution and usually there is one obtainable. Thanks so much for stopping and commenting.

Have a great Memorial Day.

May 28, 2012 05:02 PM #22
Rainmaker
647,696
Joy Daniels
Joy Daniels Real Estate Group, Ltd. - Harrisburg, PA
The appraisal process has certainly become more frustrating and scary. Great post, I have bookmarked it,
May 28, 2012 06:37 PM #23
Rainmaker
839,552
Joshua Zargari
MJ Decorators Workshop LI staging and home decorating - Lynbrook, NY
MJ Decorators Workshop

Good evening Kristin.

This is a great and informative post.

Keep up the good work.

May 28, 2012 06:54 PM #24
Rainer
124,373
John Fauth
Coldwell Banker King Thompson - Grove City, OH
Turning your dreams into an address!

This has helped me in that I have friends who are in a Lease Purchase and the person who owns the home has asked for more than it will appraise for. I have done the comps and the home is worth about 17k less than what the contract is for. However the original contract has run out but the owner wants them to stay and work out a new deal. I like the idea of "if it doesnt appraise for the purchase amount" that the owner drop the price to meet the appriasal amount. I will pass that on to them. Good post.

May 28, 2012 07:14 PM #25
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Joy,

 Thanks so much for the nice compliment. So glad you enjoyed it.

Hope your weekend was great!

May 28, 2012 08:33 PM #26
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Joshua,

Thanks for stopping and commenting. It is very frustrating when this happens.

Hope your weekend was grand.

May 28, 2012 08:35 PM #27
Rainmaker
168,529
Jay O'Brien
RE/MAX Revolution - Kansas City, MO
Kansas City : Social Media Guy

I've had good luck wtih appraisals lately but they can but hit or miss. It's a bummer when an appraiser (rather than the market and/or the parties in the contract) determine the value of the property. Thanks for the post!

May 28, 2012 08:38 PM #28
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi John,

Yes this is the easiest way to resolve the problem but sometimes it is not fair to the seller if the property is really worth full price. Usually there is a way to make everyone happy.

Hope your weekend was fun and thanks for stopping.

May 28, 2012 08:40 PM #29
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Jay,

 Yes it is a drag when the appraiser comes in low and it really is not justified. Sometimes it just cannot be explained. Have a great week.

May 28, 2012 08:57 PM #30
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Tammie White
Benchmark Realty, LLC (615) 495-0752 or www.TWRealtyGroup.net - Franklin, TN
Franklin TN, South of Nashville

Kristin, this is always a nail-biter. Especially, when the homes have sold for close to asking price. I've got 2 of those right now I'm holding my breath on.

May 28, 2012 09:47 PM #31
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Tammie,

I wish you all the luck on both of your contracts. It is hard and there is just 3-5 days when you are just in a holding pattern waiting.

Thanks for stopping and hope your weekend was fun.

May 28, 2012 10:13 PM #32
Ambassador
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Jeff Dowler CRS
Solutions Real Estate - Carlsbad, CA
Carlsbad CA Homes for Sale (760) 840-1360

Kristin

We often hear of appraisals coming in low in our area, which I imagine is true elsewhere as well. I always warn buyers who are getting loans about this possibility as well as their options so they are prepared.Sometimes the low appraisal simply does not make sense, and from what I hear, as you say, it IS hard to get them appealed. Some are able to get a second appraisal but it's not always easy to do and costs more money.

Jeff

May 28, 2012 11:36 PM #33
Rainmaker
718,781
Pamela Seley, REALTOR®
REALTY EXECUTIVES OTF - Temecula, CA
Seals the Deals in Temecula Valley California

Kristin, great explanation of what can happen when appraisal comes in lower than contract price. I wouldn't recommend appealing the appraisal. Seller is going to have to adjust price, or lose out on selling their home. Cash buyers tend to be knowledgeable about market prices and hard to get them to pay more than FMV. Thanks for your post today,

May 29, 2012 12:47 AM #34
Rainmaker
298,369
Charlie Dresen
Steamboat Sotheby's International Realty - Steamboat Springs, CO
Steamboat Springs, CO e-Pro

Well thought out blog and so true to the point. I tell me sellers to make the home shine even for the inspection. It all matters. 

May 29, 2012 05:36 AM #35
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Terrie Leighton
Ferrari-Lund ~ Reno's Premier Real Estate Company - Reno, NV
Reno Real Estate Agent ~ Selling Homes in Reno

I have been lucky, my recent transactions, the appraisals have come in at asking price! But i must say, I help my breath waiting for them to come in. But had the homes appraised lower than asking, the information provided here would have been so helpful!! Thank you.

May 29, 2012 05:58 AM #36
Rainmaker
895,372
Michael Setunsky
Michael's Commercial LLC - Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Kristin, knowing the appraisal process is good information for both buyers and sellers. Good point about FHA financing and the appraisal standing for six months.

May 29, 2012 06:04 AM #37
Rainmaker
336,170
Tom Burris
NMLS# 335055 - Dallas, TX
Texas Mortgage Dallas Mortgage FHA

If the appraisal was for a FHA loan, this appraised price will stand for 6 months.

 

This is the old rule. It was recently lowered to 120 days I believe.

 

May 29, 2012 06:07 AM #38
Rainmaker
1,370,999
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Kristen at Keller Williams ...on top of her game...thank you K

May 29, 2012 06:59 AM #39
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Jeff,

Yes, it happens sometimes that an appraisal is just off and makes no sense. Yes, appeals rarely work but it is still an option.

Have a great week and thanks for stopping.

**Just found out I got "Featured" on this post!!!! I am so excited.

May 29, 2012 07:38 AM #40
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Pamela,

I agree, the appeal process is not usually a good option but still it is there for the asking. I did one and I spent about 10 hours typing, editing, pulling more comps and filling out the forms. It was a lot of work but I was successful.

Yes, the bank's UW do not always allow a buyer to add monies to the escrow but sometimes. The best option is to go along with and appraisers price and proceed.

Thanks for stopping and commenting.

May 29, 2012 07:45 AM #41
Ambassador
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Charlie,

Yes I had one a few months ago and it had been a beauty but when the appraiser came, just a big mess of boxes but luckily we did OK but I was sweating it for a few days.

May 29, 2012 07:47 AM #42
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Terrie,

 Thanks so much for stopping and commenting. I tried to make this informative to Realtors plus any Sellers or Buyers who read this. It can be a scary process.

May 29, 2012 07:50 AM #43
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Michael,

Thanks for stopping by and commenting on the post. I tried to be very informative for people going through this process. As we all know, it is somewhat stressful until the appraisal is back and then we can all breathe a sigh of relief.....most of the time anyway.

Yes, unfortunately it doesn't work to just try to find a new buyer when 97% of all loans done in US are FHA so the appraisal stands for a period of time.

May 29, 2012 07:55 AM #44
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Tom,

I am very excited to see this rule be amended as 180 days is way too long especially when appraisers only use comps going back 3 months unless there are none available and are forced to go back further.

Thanks so much for letting us know!

Thanks for stopping and have a wonderful week.

May 29, 2012 08:01 AM #45
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Ritchie,

Thanks so much for stopping by and making such a nice comment. I try to stay on top of short sales as it is the best for my clients and any new clients calling me to list their home.

Have a very successful week.

May 29, 2012 08:03 AM #46
Rainmaker
1,135,331
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
PasadenaCA Real Estate Representation 818.516.4393

Hi Kristen -- this is a great topic to discuss at the time of the listing meeting --- sellers need to be able to establish a listing price that is realistic enough yet to get agents to show the home, buyers to make an offer and to agree to a purchase price that the lender and appraiser will affirm.   

May 29, 2012 08:24 AM #47
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Michael,

I totally agree but sometime sellers just have a figure stuck in their head so they want to start out with that price. We always think they will listen to us and come down shortly but once in a great while we find out 6 months later we have wasted everyone's time as the seller is just not capable of lowering their price and now it is off the market. They are the real losers as they could have moved on 38 days after they listed it if they really wanted to sell....but maybe not.

May 29, 2012 08:47 AM #48
Rainmaker
734,485
Juli Vosmik
Dominion Real Estate Partners, LLC, Scottsdale, AZ - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

Kristin - good blog.  The appraisal is a very important part of the process and if both the listing agent and the buyers agent have prepared a good CMA, there typically shouldn't be a problem.  In an increasing market, it's much more difficult on the appraisers as they rely on CLOSED sales.

May 29, 2012 09:02 AM #49
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Juli,

I agree with you totally. I am pretty good at pricing homes as I do REO's and BPO's but sometimes you will just get a weird price back and say where did that come from? And if the appraiser is not from the area sometimes they pick comps that are definitely not in the same area of the city. Usually the comps are correct though.

May 29, 2012 09:11 AM #50
Rainmaker
579,695
Phil Leng
Keller Williams Eastside Market Center - Kirkland, WA
Phil Leng Team - Residential Real Estate Experts &

Hi Kristin,

This is a very thorough and measured description of the appraisal and valuation process.

Thanks

Phil

May 30, 2012 04:26 AM #51
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Phil,

Thanks so much for the nice compiment. I hope it helps buyers, sellers, and agents. Have a great week.

May 30, 2012 07:06 AM #52
Rainmaker
486,970
Patty Da Silva, Davie, Southwest Ranches Cooper City, Plantation, Weston, REALTOR
BROKER of Green Realty Properties® - 954-667-7253 - Davie, FL
Top Listing Broker

Kristin,

Congratulations on your feature! Sorry I am late for your appraisal post party :)

You did a great job explaining the appraisal process.

Jun 02, 2012 06:07 PM #53
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Patty,

 I am so excited about the Featured Post. I have done some that I got over 80-100 comments but never featured so I just gave up. So what a nice gift to get a Feature.....I think they like real estate and computer stuff. I prefer taking nature pictures so I try to do 1/2 and 1/2.

Thanks so much for stopping my friend. Have a great weekend.

Jun 02, 2012 06:56 PM #54
Rainer
183,144
Dave Sullivan
www.TheCreditGuy.TV - Birmingham, MI
The Real Story on Your Credit Score - TheCreditGuy

Excellent information I will forward it if that is ok? thank you!!!

Nov 21, 2012 12:57 PM #55
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi David,

 Yes, thanks for stopping by and you can forward the info. Happy Holidays!

Nov 21, 2012 02:34 PM #56
Anonymous
Anonymous

Kristin thank you for this information.  Much needed.  And you do it so well.  Bookmarked.  Happy New Year.

Dec 31, 2012 09:01 AM #57
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Rosemary,

Happy New Year to you and your family. Best of luck in your business in 2013.

Dec 31, 2012 10:35 AM #58
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Praful Thakkar
Keller Williams Realty - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Kristin, very detailed analysis of what could happen if the house does not appraise that offer price - and wasn't aware of thirt option regarding FHA appraisal - thanks for sharing.

Jan 04, 2013 10:14 PM #59
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda
Hi Praful, Thanks for stopping by and commenting. Yes it is good to know the third option as I have had clients in this boat, Sometimes we do't resolve but 95% of the time we do.
Jan 04, 2013 10:32 PM #60
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Michelle Carr-Crowe-Selling Silicon Valley Homes in Top Schools San Jose, Cupertino, Saratoga, Palo Alto-Just Call 408-252-8900
Just Call (408) 252-8900! - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years


We are seeing this in Silicon Valley and most times the solution is for the buyer to pay the difference as in today's competitive market of multiple offers over asking price, sellers typically have a similar back-up offer.

Jan 04, 2013 10:55 PM #61
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda
I am glad the Silicon Valley is doing well. Usually there is a way to work out a low appraisal.
Jan 04, 2013 11:19 PM #62
Rainmaker
760,159
Sharon Parisi
Keller Williams Dallas Premier Realty - Dallas, TX
Dallas Homes

Kristin, this is one of the best explanations of the appraisal process  that I have seen.  I had a listings last year that did not appraise for the contract price.  Even though, we discussed the the fact that appraisals can come in under the contract price prior to listing, it was painful for the Sellers when it happened to their house.  The contract price,  in this case, was 100% of the asking price. I must add, that this was frustrating for the Buyers as well.

Feb 03, 2013 07:03 PM #63
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Sharon,

Thanks so much for the nice comments. I worked hard on this article and it came from the heart as I had a house that had just fallen $5,000 below asking and the seller cancelled escrow. He owned it outright and said it was just the principal of the thing. Very upsetting for all so I was trying to write something that parties would understand as well. It is a difficult process and the waiting at the end is so stressful for all. I wish they would appraise it earlier in the 30 day period.

Feb 03, 2013 09:26 PM #64
Rainmaker
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Helen & Larry Prier- Anacortes Properties, LLC- Residential Real Estate
Anacortes Properties,LLC- Residential Real Estate Sales- 360-708-4888 - Anacortes, WA
in Anacortes & nearby communities & Islands

Kristin, Just wanted you to know that I featured the post in my Favorite Posts for the week. great job

Jun 17, 2013 08:24 AM #65
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Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

Hi Helen and Larry,

Thanks so much for the great compliment of being selected as one of your favorites for the week. Have a spectacular week.

Jun 17, 2013 08:27 AM #66
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