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June 17, 2008
appraisals?
We are in the middle of a FSBO sale and I'm stressed about the appraisal given the crazy market...are banks still appraising at market value or are they being more cautious? We priced well, probably a little under what a broker would have priced, and got 5 bids in one weekend - it went for over asking. But now I am nervous. Anyone know what is happening with appraisals in brownstone Bklyn?
Comments
Unless there is a mortgage contingency in your contract then you have nothing to worry about. Otherwise, what % is the oener looking to finance? Generally the appraisal has to come in above the loan amount...don't know if the current environment has changed that.
Posted by: daveinbedstuy at June 17, 2008 2:48 PM
sorry...i meant to type...what % is the buyer looking to finance?
Posted by: daveinbedstuy at June 17, 2008 2:49 PM
There is a mortgage contingency in the contract...I thought that was standard (as per my lawyer - there is also one in our contract to buy). The buyers are financing about 75% of the purchase price. Will the banks look at comps? If they do that there will be no problem.
Posted by: WTbound at June 17, 2008 2:55 PM
Banks will certainly look at the comps but they may have changed their formulae for what they do with the comp data. Unfortunately, in this environment, there's no way of knowing until the appraisal comes in. You could of course ask the appraiser when he's there and if he's a nice, sort of chatty guy he will probably tell you.
Please keep us informed.
Posted by: daveinbedstuy at June 17, 2008 3:03 PM
Suggestion: Let the appraiser do his job and do not be a pain in the neck. He knows what he is looking at in respect to the property and the comparable sales for his report.
Posted by: guest at June 17, 2008 3:28 PM
I am looking for a recommendation for a plumber to connect my dryer to an existing gas line. I think I need about 10 feet of pipe to make the connection (plus all the applicable plumbing joints). Since this is gas, I need a reliable, certified plumber to complete this job.
Not to scare you, but we managed to get our house for significantly less than the contract price, because the bank appraisal came in lower than everyone thought (except me :). However, you have multiple back up bids, so this may be less of a concern. If the selected buyer doesn't get a mortgage, you could go to the next guy/gal and see if they have more money to put down in the form of a down payment. That way they buyer has to borrow less.
The banks will only lend based on the appraised amount, however, if you have a buyer with lots of cash, they can agree to make of the difference in cash.
I hope it all works out and good luck!
The banks will only lend based on the appraised amount, however, if you have a buyer with lots of cash, they can agree to make of the difference in cash.
I hope it all works out and good luck!
Posted by: bedstuyhoya at June 17, 2008 3:33 PM
bedstuyhoya...they hate me because i argue with them but you're going to give us a bad name with that post!!! LOL what the hell happened???
Posted by: daveinbedstuy at June 17, 2008 3:39 PM
Dave,
Only the bitter renters hate you (oh, and the real What and his army of copycats). Us homeowner types consider you family, even when we disagree.
But you're right, that's one wacky bunch of non-sequitors (sp?) from bsh.
Agree with your advice post above. I would add that OP could generate a few honest comps and suggest that the appraiser look at those. Where we've experienced low appraisals, it's where the appraiser used unrenovated houses as comps, where there was about a $250k price difference between renovated and unrenovated comps (ok, I'll name names, WAMU and eappraisit). Drives the average down.
Posted by: slopefarm at June 17, 2008 4:23 PM
long story dave, if i see you on the block i will share.
Posted by: bedstuyhoya at June 17, 2008 4:23 PM
People tire of Dave because of his insipid humor and the inane conversations he engages in with the caped crusader - Biff Champion. They'll drive away everyone everyone else away (except maybe that dingbat Nokilissa.) By the way Dave, remember that apartment you attacked me for for asking $4500, I rented it for $5000 and had a number of people who wanted it at that price. Cheers.
Posted by: Brooklynnative at June 17, 2008 4:43 PM
And if you don't like the appraisers comps, be prepared to challenge their appraisal with ones that you've pulled. It drives me crazy when someone pulls a comp from Flatbush and a comp in Clinton Hill for something in Prospect Heights.
Posted by: guest at June 17, 2008 4:45 PM
And if you don't like the appraisers comps, be prepared to challenge their appraisal with ones that you've pulled. It drives me crazy when someone pulls a comp from Flatbush and a comp in Clinton Hill for something in Prospect Heights.
Posted by: guest at June 17, 2008 4:45 PM
Yes, please, let's not talk about people getting a mortgage based on a value and their downpayment and then they buyers slipping you extra dough just because they have it.
The lender would be lending money base on one sale price but the real one would be higher...and if you take that dough without filing it...well, good luck.]
Word of advice: unless you can sell it to a buyer who is not getting a loan, do not take cash or any other kind of exchange.
Posted by: guest at June 17, 2008 4:48 PM
Brooklynnative....I didn't attack the asking price for the apt. I attacked the fact that you used your Garden of the Day spot to advertise it.
My point was also proven last week when Mr. B took down an ad for an apartment rental that was posted on the Forum.
Posted by: daveinbedstuy at June 18, 2008 8:52 AM
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