Appraiser ruins home buying plans.
Many times an appraiser will wreck the home buying plans of the first-time home buyer. Across the country, agents and home builders are complaining. Too many appraisals are coming in low, scuttling deals. Let me explain how.
Mr. Appraiser, had sized up a four-bedroom, three-bath house in San Rafael, CA for $45,000. Less than what the buyers offered to pay. A typical deal-killer for a seller.
And now come the best part.
Mr. Agent urged the lender to force Mr. Appraiser to consider several other properties. That could back up the original $1,410,000 sale price.
He tells Mr. Appraiser his valuation was going to wreck this first-time buyers’ shot at the American Dream of home ownership.
Buyers beware when your agent tries to persuade the appraiser to back up his valuation. By considering other properties you’ll end up likely paying $45,000 more for the house.
According to the National Association of Realtors 25 percent of its members has reported clients losing a sale. Due to a botched appraisal. The National Association of Home Builders said low valuations were destroying a quarter of all new home sales. The trend is to compare distressed properties to recently built homes.
What do you think.
Should distressed homes sales sit side by side with other recently built homes?
Roughly 40 percent of all home sales in past years were foreclosures or short sales. Meaning the property sold for less than the mortgage balance.
Mr. Appraiser determined the value of the property by looking at recent sales of comparable homes. Not only that.
He took an apples-to-apples approach.
In most cases, a foreclosure isn’t used as a comparison for a standard sale.
“Over the piano a sign read: Please don’t shoot the pianist. He is doing his best”.-Oscar Wilde
Mr. Appraiser argues he is only sizing up homes according to the reality of the market. But he admits its becoming more difficult to determine the true market value of a home.
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