Top 5 most asked appraisal questions by home owners

apexoffice · Posted: Thu Jul 10, 2008 9:08 pm Post subject:

Great info Mike!
I would like to add another 2 cents.
Real estate, in economic terms, is an imperfect market. This means that there are several factors, including emotion, that will sway the inclinations of buyers and sellers in the marketplace. Since the primary approach to value in residential appraising is the sales comparison, it is easy to see why opinions may vary. It is part of the job of the appraiser to interpret the market and select sales that they believe are the best indicators of value. Obviously, a relatively homogenous neighborhood with a high level of sales activity, it should be easy for two opinions to be close. On the other hand, when the subject is unique or there are very few sales comparable to the subject, opinions can vary greatly.

If you have two appraisals that are way off from each other, both done at the same time, I would look at both very closely and decide for yourself which one has the most logical rational for their opinion. The problem I see quite often, is that most homeowners have an emotional attachment and want to believe that the higher appraisal is automatically the better appraisal. This may not be the case, and as Mike pointed out, in todays market you may want to be extra careful since a false assumption can easily lead you upside down in your mortgage.

Benjamin

Guest

I applied for a loan with a broker, and he sent out an appraiser. I paid the appraiser a fee. Now I can get a better rate and want to use the same appraisal with another broker. The former broker says he won't allow this. Is this correct? Apparently, I'll need a new appraisal.

gmakerley · Posted: Mon Mar 23, 2009 8:04 am Post subject:

that's just awful. you need to raise a ruckus to get the former broker to work with you. good business sense should rule here. apparently the broker is so upset about losing a deal, he's holding you hostage. shame on him.

fabianoporta · Joined: 27 Feb 2009 Posts: 11 4.17 Dollars($)

Consider this situation:

I signed a contract buying a property for 170k.
The appraisal was done after 2 months and appraised for 120k.
The bank does not approve the amount... What happen to my contract?
The seller will must low the property price in order to sell me?

gmakerley · Posted: Fri Sep 11, 2009 1:38 pm Post subject:

in that situation, the bank should have declined your loan request. under every circumstance that i'm aware of, a decline of your loan request would prevent you from following through on the purchase, and you ought to have been released therefrom. the seller is not obligated to sell to you at the lower amount, necessarily.

what does your contract state? do you have a realtor? a lawyer? has the lender declined your loan?

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