CDeb Posted June 23, 2009 Share Posted June 23, 2009 If by that you mean banks stink for hiring appraisers who don't know the area and give crappy appraisals, then yes.If by that you mean just because I am willing to pay $x for that house and I don't have the money to pay $x, then no. The bank, if they get a fair appraisal (IF), is just looking to make sure its loan is secured.If you want to buy a house for $300k, but everyone else is only willing to pay $200k, and the bank loans you $300k, they're undersecured for $100k from day 1 and that's bad business.I meant the first one. Obviously, if you are willing to pay $300k for a house that everyone else is only willing to pay $200k for, then you are an outlier that the bank is wise not to cover. But if all the recent home sales around you point to the fact that your house is, in fact, worth about $300k, then you aren't an outlier, you are paying market value.The article that started this thread seems like it is referring to the first one, as well. Link to comment Share on other sites More sharing options...
Yankee_in_TX Posted June 23, 2009 Share Posted June 23, 2009 I meant the first one. Obviously, if you are willing to pay $300k for a house that everyone else is only willing to pay $200k for, then you are an outlier that the bank is wise not to cover. But if all the recent home sales around you point to the fact that your house is, in fact, worth about $300k, then you aren't an outlier, you are paying market value.The article that started this thread seems like it is referring to the first one, as well.Yes, you are correct. Some times you can't tell what people mean on the internet, lol.What I have heard from attorney and realtor friends is that appraisers from outside the loop seem to pick some completely uncomparable comparables to base their appraisal on (like the example someone in this thread gave) - a guy from Spring usually doesn't understand how big of a difference only a few blocks can make inside the loop. Link to comment Share on other sites More sharing options...
CDeb Posted June 25, 2009 Share Posted June 25, 2009 Just got my appraisal report for our purchase in Sugar Land. Value came back right at the sale price. Appraiser was from Plano! Link to comment Share on other sites More sharing options...
drone Posted June 26, 2009 Share Posted June 26, 2009 The interesting this is that I had a house appraised in Idylwood around pretty much the same time. (Two weeks ago. Yes, I purchased it.) Mind you, I never looked at that house, as it was out of the price range I wanted to spend. The one I bought was several hundred sq. ft. smaller, and while it looked great in the HAR photos, let's be honest - it didn't have nearly the upgrades of the one in the article (I saw recessed lighting, better kitchen upgrades, utility room in the house w/ mud room, the 2-car garage is likely in much better condition, known problems with the house I purchased, etc.), and there were numerous issues that need to be dealt with. (Nothing out of the ordinary for a 61 year old house.) All of that being said, my appraisal came in quite a bit higher than his appraisal. That's a bit disconcerting, since my appraisal was made on comps sold _only in Idylwood_ in the past nine months, and given the current condition of the house. So, I notice his listing is gone now from HAR, whether it's because it sold or because he de-listed it, I don't know. It does have me concerned that a single bad appraisal is enough to warrant a Chron article? Did he have several bad appraisals? Was he being pre-emptive towards future appraisals, or is it just part of the PR campaign to get the new appraisal rule changes reversed? (A rumour I've heard a few times regarding this article.)Yes, I do believe the appraisal his buyer got was a bad one. Namely, because I have access to at least one other appraisal done at the same time on a comparable house in the same neighborhood =). Of course, you could always make the argument that my appraisal was bad, but, you know, I've got 20 pages of documentation that goes into exacting detail as to how it was generated, and it all looks good to me and everyone who read it. (We'll avoid pointing out the obvious that at least one of those readers is a non-expert [me] *grin*) Link to comment Share on other sites More sharing options...
BryanS Posted July 1, 2009 Share Posted July 1, 2009 Just got my appraisal report for our purchase in Sugar Land. Value came back right at the sale price. Appraiser was from Plano!Which makes no difference, at all. I would bet that your report had houses, in your neighborhood, as comps, not homes in Plano. Link to comment Share on other sites More sharing options...
CDeb Posted July 1, 2009 Share Posted July 1, 2009 Which makes no difference, at all. I would bet that your report had houses, in your neighborhood, as comps, not homes in Plano.It doubt it would make a difference in the neighborhood in which I'm buying, you're right.But I bet it would make difference in some inner loop neighborhoods, where there can be vast differences from block to block that a "foreigner" wouldn't pick up on. Link to comment Share on other sites More sharing options...
Yankee_in_TX Posted July 1, 2009 Share Posted July 1, 2009 It doubt it would make a difference in the neighborhood in which I'm buying, you're right.But I bet it would make difference in some inner loop neighborhoods, where there can be vast differences from block to block that a "foreigner" wouldn't pick up on.That was exactly my point - in areas like midtown and the Heights, 2 blocks can make a HUGE difference.Slightly off topic - what in the residential resale contract protects the buyer if the appraisal kills the financing? Especially if this happens after the options period and financing contingency period have passed? Link to comment Share on other sites More sharing options...
diggity Posted July 1, 2009 Share Posted July 1, 2009 what in the residential resale contract protects the buyer if the appraisal kills the financing? Especially if this happens after the options period and financing contingency period have passed?If you look at the financing section on page 1 (Sec 4A), there is language that says:If the property does not satisfy the lenders' requirements for the loan(s), this contract will terminate and the earnest money will be refunded to the Buyer. Link to comment Share on other sites More sharing options...
Yankee_in_TX Posted July 1, 2009 Share Posted July 1, 2009 If you look at the financing section on page 1 (Sec 4A), there is language that says:If the property does not satisfy the lenders' requirements for the loan(s), this contract will terminate and the earnest money will be refunded to the Buyer.Yay! You once again have been helpful and very time saving. Thanks. Link to comment Share on other sites More sharing options...
diggity Posted July 2, 2009 Share Posted July 2, 2009 no problem Link to comment Share on other sites More sharing options...
insidehouston Posted July 7, 2009 Share Posted July 7, 2009 So a few years ago appraisals were a joke (Countrywide was doing drive by appraisals which is what it sounds like). Now banks are freaking out. So appraisers are erring on the low side. If they are having a problem with a apprasial (they cant find comps) instead of working to find out the value they just come in low. For them their is no risk in coming in low but there is a risk in coming in high. We are seeing appraisals below anything that has sold in an area for over 6 years. Appraisers are lazy and coming in low is easy in this environment. Link to comment Share on other sites More sharing options...
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