Re: Bank Appraisal - Selling Price

Forget about the "appraisal". It has nothing to do with the *real* value of
a house.

Also forget about the "property tax valuation". This is typically lower than
the actual value and also has nothing to do the *real* value of a house.

The "asking price" of a house and the "asking prices" of other homes in the
area have nothing to do with the *real* value of a house. It is a game! You
ask for more than what the house is worth, then the buyer offers less. The
seller gets the real value and the buyer thinks they got a bargain.
Everybody is happy!

The *real* value of something is what someone is willing to pay for it. With
real estate, it is location, location, location. You can go to yahoo.com
real estate and see what other homes in the same area have sold for
recently. THIS is the *real* value of homes in that area. This is what
people are willing to pay for homes in that area.

So look at those selling prices, then go look at the homes. See what
condition they are in. Also consider square footage, bedrooms, bathrooms,
etc. But this will give you an idea of what someone would be willing to pay
you if you sold the home in the near future.

If other similar homes in the area have sold for less, then point this out
and offer a lower price. Or if other similar homes in the area have sold for
the same price, but they were in tip top condition, then point this out and
offer a lower price.

But if other similar homes in the area have sold for more recently, then
good deal!

Another thing to consider is the current "lending crisis". In theory this
should reduce the value of homes a bit (supply and demand). But this may
have no effect on housing values in some areas. Ot could have a big effect
in other areas.

Then the seller could be stubborn and be willing to wait for a better day.
Or they may be in a hurry to sell and be willing to take less.

You can of course point out that the appraised value was x, and the house
needs y amount of repairs, so the selling price should be lowered further.
And/or use comparable housing selling prices to reduce your offer. The name
of the game on your part is to buy for the lowest price possible. Use all
the tools at your disposal. Point out flaws, lower selling prices nearby
(leave out the higher selling prices), the lending crisis, etc. Say "Look at
this! This house is not worth this much..." Then when the seller says x is
their absolute rock bottom price, complete the deal if that is a fair price.


"Slain" wrote in message
I am in the process of buying a home. The home was originally listed
for 345k. It has been on the market for 6 months. We negotiated and
got the offer down to about 295k. All well so far, until we got the
home inspection done.

The home inspection further revealed problems with septic etc and we
brought up those issues. The final nail was the bank appraisal, which
came up to be the exact price as the mortgage that is 295k. Further,
the appraisal says that the house is in need of no renovation or
repair due to the recent changes. How ever the house is in not so good
shape and the reason they had agreed to let go of about 50k was
because of the repairs it needed.

Talking to the bank person, her point was the appraiser just tries to
get the mortgage loan approved. And he assumes or overlooks the parts
which are in need of repair as other wise the appraisal would be lower
than the mortgage and hence, we wont be able to get a bank loan

This make me think if the house was over priced in the first case. I
understand the bankers reasoning, but it means that in some ways I am
paying for the house to be completely fixed which is about 30k worth
of expenditure.

How much weight age should be put on the bank appraisal. It almost
seems like they made the appraiser actually bump up the appraisal. Any
thoughts?

Thanks a lot
Manny



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