On Sep 22, 10:47 am, "Daniel T." <danie...[at]earthlink.net> wrote:
- quote -

Thank you guys!!! I have one more question though. I do have a PMI,
since I put only 5% down and talked to bank who said they take off the
PMI within a year under the exceptional case where a structure is
added to home. It qualifies as significant addition and if the
appraisal causes the value to go higher than the 20% of the mortgage
the PMI comes of.

So my question is how this is factored into the appraisal.
The bank appraisal now, did the total appraised cost ( land +
building) / total living square feet
Though I think it should have been Total Building value / total living
square feet

Thanks

"Usenet2007[at]THE-DOMAIN-IN.SIG" <Usenet2007[at]THE-DOMAIN-IN.SIG> wrote:

- quote -

True, but with the market the way it is and the likelihood that even if
the buyer does default it won't be for 6-12 months. There isn't much to
hold him to.

I'm curious how many appraisers have been sued by banks and what was the
result.

On Fri, 21 Sep 2007 12:54:14 -0500, Slain <Slain.k[at]gmail.com> wrote:

- quote -

For your purpose of deciding how much to spend for the house, NO weight
should be given the bank appraisal.

In my opinion, the only purpose of the bank appraisal is to protect the
bank -- so that when the examiners come to see if they are giving out bad
loans, the bank has an appraisal for at least the amount of the loan on the
property.

YOU are the one who decides how much the house is worth to YOU. But it
seems to me that if the house was worth $295K to you, and then you
subsequently discovered $30K in required repairs, that it should be worth
no more than $265K and probably closer to $250K to you, given the pain it
is to have all that stuff fixed up.

Again, assuming the faults you posted here were not previously disclosed,
you probably have an opportunity to withdraw from the contract without
penalty.

If, for some reason, you MUST buy THIS house, then your negotiating options
are more restricted.

Even by obtaining comparable values from a realtor, in a fast-moving
market, they may not be very reliable in determining what YOU should
actually pay for the property. You really need to do your own homework;
look at lots of houses; check sales; check the price direction in the area,
etc.

Personally, I would not rely on an appraiser to figure out how much I
should spend for a house. I would use one if I were arguing with a taxing
authority over the value of the house for taxation, but that's a different
issue.

I don't believe I've ever bought a home for as much as a realtor said it
was worth, nor sold one for as little.
--ron

In article
<1190404677.521104.303060[at]d55g2000hsg.googlegroups.com> ,
kastnna[at]auburnalum.org says...
- quote -


- quote -


- quote -


- quote -


I recently met a guy working as a valuer (the NZ equivalent to an
appraiser), and asked him to explain his job a bit.

He noted that, if he over-valued a house (stating that its value
was higher than reasonable), he could end up personally liable.
Like if the buyer gets a mortgage based on the inflated amount.
And then defaults, leaving the bank with a house that isn't
really worth enough to cover the amount owed. And, according to
him, the bank could actually sue him (the valuer) for a sort of
malpractice.

OTOH, things might work differently in the US, as far as whether
the bank is selling off the mortgage to some other company,
versus carrying it themselves. Bundling and selling off a block
of mortgages would muddy the waters and add extra hassle to
pointing the finger at parties responsible for losses. Plus the
issue of the US being a much bigger market, with larger
quantities of defaults to deal with.



--
Earn Money With Your Web Site
http://www.WebSponsorZone.Net
Web Site Advertising Directory

On Sep 21, 9:45 pm, "Daniel T." <danie...[at]earthlink.net> wrote:
- quote -

Thank you Guys!!!! I negotiated the house and got it for 275k. I guess
the compelling e-mails I wrote to them worked. Though I think the
owners had a wrong time which I think is natural as the emotional bias
makes one believe that his/ her home is worth more than it actually
is.

Thanks for all the suggestions


======================================= MODERATOR'S COMMENT:
Please trim the post to which you are responding. "Trim" means that except for a FEW lines to add context, the previous post is deleted.

In article <1190408470.745720.233900[at]19g2000hsx.googlegroups.com> ,
Slain <Slain.k[at]gmail.com> wrote:

- quote -

That doesn't matter. In my old neighborhood every house in the last 2
years had sold for 98% of asking price or better... If they sold. Most
of the houses weren't selling at all. You may just have a bunch of
people waiting for suckers.

- quote -

A realtor won't help. He only gets paid if you buy so he will do what it
takes to get you to buy. I recently sold my house, and the buyer agent
got massive kick-backs to make the deal happen.

Getting your own appraisal may help depending on how desperate the
people are to sell, but it really isn't necessary. Just have a friend
show up with some cover-alls on. He or she can go through the house with
a critical eye, point at things that are in need of repair, then leave.
The next day, tell the seller that due to your appraiser's findings, you
want another 30K reduction in price (or whatever.)

Ultimately, the house is worth what someone is willing to pay. If you
are willing to pay 265K despite the repairs necessary, then that is how
much it is worth *to you*.

Slain <Slain.k[at]gmail.com> wrote:

- quote -

Run from this deal at the highest rate of speed, even if you loose your
ernest money! You have an appraiser who falsified his appraisal and a
banker who openly admits that the appraisal is likely incorrect.

- quote -

In *addition* (so let me be clear, the other advice offered here looks
great, but for this size expense, do this as well) you should go to
www.zillow.com and scout out the neighborhood. The site offers recent
sales and has data that would take hours, e.g. sq ft info, price per sq
ft, number of bed/bath etc. An appraiser uses nearby recent sales data
combined with the condition of the house, among other things to come up
with a number.

FWIW, when I last refinanced, I told the appraiser I wanted a low-ball
appraisal, that the loan I requested was less than half the last
assessed value, so I asked for the appraisal to reflect what a quick
sale would get. And mostly, I got what I asked for on the bank's dime.
JOE

Slain <Slain.k[at]gmail.com> wrote:

- quote -

My first thought is that it is a little late to be worried about what the house
is worth. You should have known that before you made the offer. The
inspector's report can change things. Depending on the terms of your offer, you
may be able to use that bring the price down or walk away.

But the bank appraiser's report basically said the house is worth what you
offered. Not too bad.

-- Doug

On Sep 21, 3:59 pm, kastnna <kast...[at]auburnalum.org> wrote:
- quote -

Thanks...the assessed value is about 267k. But ours is done once every
5 years. Anyways the other sign is that most of the houses in the area
sold around the assessed value.

So may be you are right...I think I should just get my own appraisal
done!!! And a realtor should help for sure.

Oh yeah, and get a comparable market analysis from a local realtor. If
every house similar to his is selling for $250k, tell the guy to pound
sand.

Have a good weekend all!

On Sep 21, 12:54 pm, Slain <Slai...[at]gmail.com> wrote:
- quote -

If the loan appraiser was hired by the homeowner or the mortgage
lender, you need to scrap their appraisal and get your own. I've had
an appraiser ask me "what does this house NEED to be worth". My
request couldn't be totally unreasonable, but you get the picture.

- quote -

If he appraises the house at $275, the bank isn't going to give you a
$295k loan because they know that if you default, they will already
have a house worth less than the outstanding mortgage balance. An
appraisal of $295k or better is the only way to complete the loan (for
now). If the appraiser wants to keep the lender's business coming his
way, he would be ill advised to regularly be the cause of failed loan
processings. Therefore he appraises at whatever the bank needs him to.
Not fair or just, I know, but you're not gonna change the world
overnight.

If you are hell bent and determined to buy this house, there is
another facet we are missing. Where's the down payment? Suppose the
house truly appraises at $265k ($295k-30k in repairs), but the
homeowner is asking for $295 as-is. If you have a down payment > $30k
the mortgage will be less than the appraised value and the loan may/
should get approved. However, you are throwing away $30k in equity and
your house still needs repairing. I'm not advocating this route, I'm
just giving you the options.

All that said, get your own appraisal done. It will be well worth the
couple hundred bucks. You can also go to the county courthouse (ours
is online) and find out the appraised value used for property tax
purposes. Our state adjust the appraised values annually and actually
inspect each property every three years so the values are fairly
accurate.

(SNIP)

Get your OWN appraiser to give you an UNBIASED opinion.
Cal Lester


- quote -

I am in the process of buying a home. The home was originally listed
for 345k. It has been on the market for 6 months. We negotiated and
got the offer down to about 295k. All well so far, until we got the
home inspection done.

The home inspection further revealed problems with septic etc and we
brought up those issues. The final nail was the bank appraisal, which
came up to be the exact price as the mortgage that is 295k. Further,
the appraisal says that the house is in need of no renovation or
repair due to the recent changes. How ever the house is in not so good
shape and the reason they had agreed to let go of about 50k was
because of the repairs it needed.

Talking to the bank person, her point was the appraiser just tries to
get the mortgage loan approved. And he assumes or overlooks the parts
which are in need of repair as other wise the appraisal would be lower
than the mortgage and hence, we wont be able to get a bank loan

This make me think if the house was over priced in the first case. I
understand the bankers reasoning, but it means that in some ways I am
paying for the house to be completely fixed which is about 30k worth
of expenditure.

How much weightage should be put on the bank appraisal. It almost
seems like they made the appraiser actually bump up the appraisal. Any
thoughts?

Thanks a lot
Manny