Low Appraisal
New to the site. Just wondering if anyone has had the same experience as me. I am in contract to buy an apartment in a coop and am applying for a fairly large mortgage. the appraisal came in 35K lower than the price I offered and am in contract to purchase the place for. i…
New to the site. Just wondering if anyone has had the same experience as me. I am in contract to buy an apartment in a coop and am applying for a fairly large mortgage. the appraisal came in 35K lower than the price I offered and am in contract to purchase the place for. i have heard very conflicting opinions about how this could affect my loan. Thoughts?
Springs- Are you serious? How dare you. If you knew anything about HVCC you would know that they pay appraisers half of what they used to get, and use appraisers that are not from the area. Some appraisers spend no more than 5 mins in a property and then leave, they don’t care and do the least amount of work. This hurts the client in the end. The errors an inaccuracies are horrendous. Please don’t comment on a topic that you have no experience in.
And Mr. Smarty pants, the vast majority of low appraisals are coming on refinance transactions not purchases so they have no bearing on propping up values. All this does is make it more difficult for someone that is already paying their mortgage to take advantage of low rates.
Market value is exactly that, the market. If a buyer feels that a property is worth X and they purchase that property for X isn’t that a true indication of the market value?
What is your motivation?
This happened to me! And since our contract was contingent on us getting the loan from the bank…I asked the bank to reject me if the apt didn’t appraise. As this was happening the seller was up against a wall. He needed to sell fast since he needed to enroll his kid in the new school. So, he has to re-negotiate with us. Totally worked! He came down in price.
“You can also try your luck with a new bank and new appraisal. Also some of the regional banks that don’t sell to Fannie/Freddie don’t comply with HVCC so you can order the appraisal from a local appraiser that actually knows what they are doing.”
That simply means guys like Adam try and pressure appraiser to hit values. Exactly why the market is in the tank now…..
No rush to buy anything. So much supply out there in most neighborhoods. Enjoy renting for a while. We’re in the second quarter of this game, and the coaches haven’t used any timeouts yet…..
Boy Adam, you’re almost batting 1000 with the whole challenges thing. Seems like you can never prove your point about values. Somehow you are deluded into thinking the opinion of buyers and seller’s hinges on your deals…….
Hopefully your contract contained a mortgage contingency clause…..
bank appraisors take a non-cheerleader look at values.
Go by them, not by the verbage on this and other real estate booster blogs. I for one think that real estate prices in Brooklyn in most non-Goldman-Sachs blocks is grossly inflated and beyond the means of the people most likely to buy. Okay if you are selling an exquisite carriage house on Grace Court Alley or a brownstone on Montgomery Place, but for most of the rest of Brooklyn, forget it.
If a professional appraiser told me a house was worth 35K less than what I thought it was worth, I would be running to get out of the deal.
Tell the sellers you will pay what the appraisal says the place is worth. If they don’t want to make the deal, hey it’s their loss.
Not sure why otherwise smart people would tell you otherwise.
Sometimes the best deal is the one not made.
get another appraisal.
I did it on my last purchase and the second one came at what the bank needed.
It would be cheaper than paying the 35k.
“appraisers are assuming prices are still going down”
Those assumptions will be confirmed.
brooklynstyle (from Biggie’s ‘I Love The Dough’ intro?) – midnight oil didn’t get the 2nd appraisal issued. You misread.
“I’ve gotten 2 out of 50 appraisal challenges raised in value.”
4% success rate is not good. Prices will continue to fall and banks know it. Stop trying to play with taxpayer money, folks.
redhookschnook – Don’t buy now. Wait’ll the NY Case-Thriller Home Price Index stops falling from previous year (whether I’ll be proven right about half off or not). No, coops aren’t included in that data set but, relevant on the way up (index and coops up +200% trough to peak), relevant on the way down. You’ll thank me later.
***Bid half off peak comps***