Appraisals...ugh!!

[Anonymous]

Does anyone else feel like appraisals are a joke and really only profit PMI?? Maybe I am totally wrong but when I look at the auditors website it says the house I am purchasing was worth $96,000 in 2007, it was listed for $75,000 (REO) and I am paying $70,000 for it. Got the appraisal back and it says it is worh $72,000. All 3 of the comparable were between 82-90K. My LO said the went very "conservative" with the appraisal and could of went over 80k. Um... so why didn't they??? Confusing?!?

[Anonymous]

Are you talking about the tax assessors website when you refer to the auditor? If so, unfortunately, those are not accurate in judging the actual market value for a home. They often reflect a signficantly higher, or even lower number than what people will or have paid for a home. I see how frustrating this can be for you though, not understating your situation, just wanted you to know that you can't get an accurate picture of a homes value through the tax assessment records.

[Anonymous]

Hmmm...on the flip-side do you think the lower appraisal might give you some leverage to re-negotiate the sales price or get the seller to cover closing costs?

[Anonymous]

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UpUpUp wrote:

Hmmm...on the flip-side do you think the lower appraisal might give you some leverage to re-negotiate the sales price or get the seller to cover closing costs?

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Sadly no, it just always seems odd when you talk to people and the lender orders the appraisal it always seems like it is exactly what is being paid for the house or a little over. Isn't it true that if you have 20% equity in a home in the beginning you do not have to pay the PMI? I just thought it was weird that my LO said the appraiser could have went over 80k but went conservative... why?!?

[DallasLoanGuy]

if you are paying $70K, then that is market value. It may no longer be worth $96K.... if it were, it wouldn't be mareted that low.

remember, an appraisal is an independent opinion of value.... it is NOT a profit center for pmi. there is NO collusion or secret smoke filled back room negotiations.

appraisers being conservative? uh, since the credit crunch, they are ALL worried about slipping up and getting blacklisted by lenders.

if the auditors website says $96 and it sells or $70, then that is a good indication that the home is in a declining market. no appraiser in their right mind would push an appraisal there.

[Anonymous]

What is an auditor?  Here I know about the tax assessors website, which is really off in their valuations, but what is the difference between this and an auditor site?

[Anonymous]

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UpUpUp wrote:

What is an auditor?  Here I know about the tax assessors website, which is really off in their valuations, but what is the difference between this and an auditor site?

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They may be the same thing. We just have a site here with it has listed by address, owner etc. how much a home appraises for, when it was purchased, how much is was purchased for, the layout and improvements etc.

[Anonymous]

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DallasLoanGuy wrote:

if you are paying $70K, then that is market value. It may no longer be worth $96K.... if it were, it wouldn't be mareted that low.

remember, an appraisal is an independent opinion of value.... it is NOT a profit center for pmi. there is NO collusion or secret smoke filled back room negotiations.

appraisers being conservative? uh, since the credit crunch, they are ALL worried about slipping up and getting blacklisted by lenders.

if the auditors website says $96 and it sells or $70, then that is a good indication that the home is in a declining market. no appraiser in their right mind would push an appraisal there.

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Well it is a forclosed home selling as is, but it just doesn't make sense that a year ago it was worth so much more. Especially when homes here aren't declining much. But I think you are right I was just expecting it to appraise for more based on homes I have looked at that were smaller, in worse condition and pricier. Thanks though

[Anonymous]

Did it actually sell for that much a year ago? Or is it just this website saying it was worth that much?