Re: House value appraisal?


jsaranac wrote:
"lizzard woman" <kimosabeRMOVE@xxxxxxx> wrote in message
news:eWWRf.145140$H%4.140131@xxxxxxxxxxx
The mortgage people appraised the value of our new house at EXACTLY what
we
paid for it. What is up with that? I seriously doubt they would have
come
up with that exact figure if they didn't know the accepted offer.

I think what is happening is that they want to be sure it is worth at
least
what we are paying but they don't want to acknowledge any equity beyond
the
down payment but I'm not sure why.

This is common. Don't forget they do get to know the sale price as part of
the mortgage application process, and what you are willing to pay is one of
the indicators of value, isn't it? Plus if it comes in too high, they piss
off the seller and if it comes in too low, they stand to kill the deal. So
more appraisals than not come in at or close to the actual purchase price,
around here. They usually will only show a lower price if they think you're
paying too much and the bank could get hurt; they have no incentive to show
the higher price if you're paying too little, usually they just use the
actual price, unless there's some kind of whopping difference in value, in
which case they may suspect and understated sales price/some kind of fraud.

Loan to value ratios are another reason. Don't know how much you are
putting down vs. mortgaging but if they can keep you at 80% or above you
need PMI which is more $ for them/their cohorts. So it's in their interest
to be conservative and if the house is worth more, not show it (and only
show it if it's worth significantly less.)

But usually the bank appraisal is going to be in the ballpark. What's your
concern, that you are overpaying for the house?

I wish I knew more about this stuff.

If anyone knows what's going on here, I'd appreciate getting clued in on
it.

There's not likely any grand conspiracy.

But hiring an attorney will be worth far more in value on this and other
issues, than free advice from me or anyone else on NGs.

If I have a "field" other than horses it's real estate.I am assuming
this is the house you have just bought or are buying. In my
experience when that happens the appraiser feels that the selling price
is pushing it but since someone is willing to pay that goes along. It
may also be the property has some features which are specialized and
add value to certain buyers but not across the board so the appraiser
can't really count them.

We had an interesting time with appraiers within the last couple of
years. The last appraisal on this house was a mess. The mort. company
just couldn't handle how a 69k house was worth 100k more than it was 18
months before LOL. We had to PROVE it with before and after pics etc. I
will go through it again with the next appraisal also since we are not
done with all the work and it will jump again hopefully another 100k
but probly closer to 60k.

A good way to compare is by the square foot. Compare yours to others in
the area.

Dana (who got her first pair of ostrich skin boots today and feels very
fancy)

.

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