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Another Article On Inflated Appraisals

Discussion in 'General Appraisal Discussion' started by Tawfik Ahdab, Jul 25, 2005.

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  1. Tawfik Ahdab

    Tawfik Ahdab Senior Member

    0
    Feb 19, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Oregon
    http://www.philly.com/mld/philly/news/12179804.htm

    Aside from the usual, this stuck out.

     
  2. Karl

    Karl Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Arizona
    Price Appreciation = More $99 Investor graduates per month than available properties for the graduates = Price Increases for the previous Investor to profit. Many willing & able Appraisers to GURANTEE the increases are appropriate BECAUSE there is a Contract & there is always the TIME ADJUSTMENT.

    Do the Income Approach on this property Paid 205,000 Renting the property to the seller of the property for 825 per month. (Sellers Mortgage was 850). Due to the Vacancy rate in this ONE subdivision being 16% (less than 5% for MOST Appraisal practice) Most homes in this subdivision are now rentals with average rent on same model home being 775. (Seller suggested the 825 to assure he wouldn't have to bother moving). Last July this KB home sold for 125,000 Yet same homes are now selling for over 200. To California Investors SIGHT UNSEEN . Investor SAYS!!! The rent doesn't cover my Mortgage/Property Tax/ Insurance payment !!!! DUH!

    Note: This particular "INVESTOR" is a MANAGER of a Long John Silvers in California. Sales price was 100% paid for by Lender including closing cost.

    HOWEVER I can make it up on Income TAX Deductions. My advice to renter is get everything fixed in the house (K&B home there are things that need fixin) through the Landlord then stop paying your rent & Buy the home back at foreclosure.

    How do I know all facts are true facts?? the seller is one of our Appraisers. & requested a certain Appraiser from Snottsdale to ASSURE the Contract Price would MATCH the SELLNG price.
     
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