What do you think of Appraisals?

[LynnDeb]

Had appraisal done on house we are in contract in....The appraisal came in $5000. less what would you do??

[buggyone]

If it was written in the contract that the house would appraise for the sales price, I would reduce my offer. If it was not written in the contract, you will have to make the call yourself. The bank will also make their call regarding the mortgage. It just may cost you more money to borrow for the mortgage.

[l2ridehd]

The Villages is in an "up" market with rising prices. What sold yesterday for X will sell for X+ tomorrow. So seeing an appraisal $5000 below your offer would not be unusual as the appraisal is based on what has been sold and your offer is based on what will be sold. If you want the house you should try to work with the seller and come to an agreement. Maybe split the difference or something. But realize you might have to pay it all. If your willing to lose it and find another, then only accept the appraised value and see what happens.

This problem will happen more and more going forward as home prices continue to rise. As we move from a buyers market to a sellers market this will happen. We are already starting to see multiple offers and offers above selling price. Not many, but it is happening and will happen more going forward. I believe home prices in The Villages have gone up 8% to 12% in the past year. This trend will continue for the next few years.

[capecodkev]

I am an appraiser and look to see if they made any timing adjustments upward for the comps they used depending on the sale date. If they are more than a couple of months old, ask for a reconsideration of value and supply them with some comps of your own that are similar in size, bedroom count, baths and location. Ask your realtor and they should be able to provide some to you. You can always ask the bank for a second appraisal. If not then ask the sellers to lower their price to the appraised value. The thing is the appraiser knew how much the house is selling for since they are required to review the P&S. Or you are just over paying a little bit. If you really love the house, buy it anyway.

[Billyworld]

An Appraisal is an opinion of someone on value. Get five different appraisals and there will be five different numbers. If you really like the place and want to live in TV, pay the extra 5K and move on with your life. In a year you will not even remember the 5K and be happy with your decision to move forward. --Just a opinion!

[LvmyPug2]

Prices are definitately on the rise so if the comps used in your appraisal were even a couple of months old, they may not reflect the market today. I know of three houses that sold in Dec, all had multiple offers. 2 sold for asking price 1 sold for $1,000 below asking. A yr ago, that was not happening here. Between the Villages and the MLS realtors' websites you should be able to get a good feel for what the market is for your particular model/size of home. If you are in the ballpark of current prices, I would just accept the appraisal or ask to have another appraisal done.

[capecodkev]

An appraisal is an opionion of value, however if the appraiser missed better comps or made inproper adjustments, then the appraisal is not a fair representation of the market. There are certian standards an appraiser must go by. If he or she is not compedent for that market place, then they should not be doing that appraisal.

[gomoho]

There is no reason in the world an appraiser should use old comps in TV unless this house is extraordinary. The way houses sell around here the comps she be no older than the past month.

[Challenger]

Had appraisal done on house we are in contract in....The appraisal came in $5000. less what would you do??

Depends on the price of the house. Appraisals can easily be +or- 5% and are only an estimate of value at a point in time. If the listing price is $200,000 the variance is only 2 1/2% and is well within acceptable professional standards. So, the choice is yours. If you want the house , use the appraisal to support a reduced offer. If the seller agrees , good for you. If he doesn't you need to decide how much this house means to you and either pay the price or move on. :pray:

[Cantwaittoarrive]

Depends on the price of the house. Appraisals can easily be +or- 5% and are only an estimate of value at a point in time. If the listing price is $200,000 the variance is only 2 1/2% and is well within acceptable professional standards. So, the choice is yours. If you want the house , use the appraisal to support a reduced offer. If the seller agrees , good for you. If he doesn't you need to decide how much this house means to you and either pay the price or move on. :pray:

:agree: depending on your down payment, if you are getting a mortgage, you may have to pony up more money to get a loan

[2BNTV]

The Villages is in an "up" market with rising prices. What sold yesterday for X will sell for X+ tomorrow. So seeing an appraisal $5000 below your offer would not be unusual as the appraisal is based on what has been sold and your offer is based on what will be sold. If you want the house you should try to work with the seller and come to an agreement. Maybe split the difference or something. But realize you might have to pay it all. If your willing to lose it and find another, then only accept the appraised value and see what happens.

This problem will happen more and more going forward as home prices continue to rise. As we move from a buyers market to a sellers market this will happen. We are already starting to see multiple offers and offers above selling price. Not many, but it is happening and will happen more going forward. I believe home prices in The Villages have gone up 8% to 12% in the past year. This trend will continue for the next few years.

:agree:

I think you have to decide on how badly you want this house. An agreement to split the difference seems reasonable and if the seller doesn't want to, then you have to decide whether this is your perfect house or whether you should still look. I also agree with the person, this difference is too small to worry about in terms of down the road. Who's to say whether you'll find an identical house that is less expensive.

Only you can decide whether the pricing is a deal breaker as only you know your finances better thn anyone..

[batman911]

The real appraisal is how much is the house worth to you. If you like it, go for it.

[LynnDeb]

Thank you for all input....we are taking the house

[eremite06]

An Appraisal is an opinion of someone on value. Get five different appraisals and there will be five different numbers. If you really like the place and want to live in TV, pay the extra 5K and move on with your life. In a year you will not even remember the 5K and be happy with your decision to move forward. --Just a opinion!

:agree: I'm a former appraiser. Got out when Banks and Wall Street monopolized the market. If you didn't hit their number you didn't get work. I have morals and standards. It was easy for me to get out because it was only a side job.

[LynnDeb]

:agree: I'm a former appraiser. Got out when Banks and Wall Street monopolized the market. If you didn't hit their number you didn't get work. I have morals and standards. It was easy for me to get out because it was only a side job.

WoW interesting