Quote:
Originally Posted by joelfmi
What these buyer and sells do is cosmetic repairs which are not up to code.
|
You're talking to me about me and my flip. The total of my work was mowing the lawn, no materials, no improvements. I simply bought a home from someone who based the sale price on an appraisal, I sold it based upon it's value which is what someone would pay. It sold in 2.5 hours for asking. There are lots of opinions on this thread, so far I am the only one that earned tens of thousands of dollars acting on my opinion that appraisals are not necessarily accurate in determining a homes value.
I guess you could say I did more than mow the lawn, I edged it and blew the clippings as well. It wasn't a bad lawn but it needed a mow.
The point here is appraisals are based upon a set of accepted parameters, much like accounting. For appraisals the biggest player established those rules. Fannie Mae set those standards for a safe underwriting of mortgages. All of that is reasonable.
However, we are in an environment where TV homes have risen 21.4% over one year. Comparable sales play the largest factor in an appraisal. Sales six or three months ago lose their respective relevant value in determining what a home is worth to a buyer.