Bedroom Count?

[KStoFL]

I'd walk away from this and find another house

Personally, it sounds like the seller is simply fixed on their "price" (which I understand) and obviously you disagree (hence the $65k "difference" in opinions)

Unless you both can renegotiate ... I'd walk. There's always another house on another block ...

My realtor is adamant a well that a local lender/appraiser will add some value but prob not close the gap. She said she had issues with the big banks and how they've appraised this area, and I get it. Revitalization is always tricky. Appraised value doesn't equal Market. But unfort. that is what banks go by and we cannot pay cash. The house is "brand new" on the inside and in an amazing location to the beach. Only reason we are willing to get a 2nd opinion is because we haven't found anything in 8 months close to this price wise and condition (it is rated a C2). We were even ok with adding a garage. I'm not 100% keen on using the lender my realtor is recommending so we will look for 2-3 other "local" lenders to get quotes from. This is the only part that doesn't sit well with me but I know it would be illegal for her to influence a lender and they also cannot choose appraiser as it goes to a pool assignment. I figure we won't close the gap and then see where we go from there. I didn't pay a fee for the first appraisal so that's a plus at least.

 

[Riick]

Sounds to me like the OP is adamant about overpaying. Do what you like.
HOWEVER: Everything discussed here over last few months seems to indicate that the real estate market has hit an inflection point, and a down-leg is under way. It feels really bad when you're upside down, especially when you've fought to get into that position.

 

[KStoFL]

I'd walk away from this and find another house

Personally, it sounds like the seller is simply fixed on their "price" (which I understand) and obviously you disagree (hence the $65k "difference" in opinions)

Unless you both can renegotiate ... I'd walk. There's always another house on another block ...

My realtor is adamant a well that a local lender/appraiser will add some value but prob not close the gap. She said she had issues with the big banks and how they've appraised this area, and I get it. Revitalization is always tricky. Appraised value doesn't equal Market. But unfort. that is what banks go by and we cannot pay cash. The house is "brand new" on the inside and in an amazing location to the beach. Only reason we are willing to get a 2nd opinion is because we haven't found anything in 8 months close to this price wise and condition (it is rated a C2). We were even ok with adding a garage. I'm not 100% keen on using the lender my realtor is recommending so we will look for 2-3 other "local" lenders to get quotes from. This is the only part that doesn't sit well with me but I know it would be illegal for her to influence a lender and they also cannot choose appraiser as it goes to a pool assignment. I figure we won't close the gap and then see where we go from there. I didn't pay a fee for the first appraisal so that's a plus at least.

 

[KStoFL]

Thank you for that. We want a fair price and it's hard when there is pressure from both sides to get a second opinion . unfortunately in the 3 homes we've bought before and even two rentals in rough areas, I've never had an appraisal issue and was unclear how common or uncommon getting second opinion is .you guys gave me good things to think about and I've shared concerns with my realtor as well. I also appreciate replies related to the 5th bedroom issue as that was very confusing to me.

 

[Tim The Enchanter]

there is pressure from both sides to get a second opinion

They both are looking for a commission. The appraiser is paid relatively little, but is not biased one way or the other. So, while they are working for the bank not you, their interests are aligned with you, as you want a fair price.

Let us now how it works out or doesn't.

 

[Overimprovement]

My realtor is adamant a well that a local lender/appraiser will add some value but prob not close the gap. She said she had issues with the big banks and how they've appraised this area, and I get it. Revitalization is always tricky. Appraised value doesn't equal Market. But unfort. that is what banks go by and we cannot pay cash. The house is "brand new" on the inside and in an amazing location to the beach. Only reason we are willing to get a 2nd opinion is because we haven't found anything in 8 months close to this price wise and condition (it is rated a C2). We were even ok with adding a garage. I'm not 100% keen on using the lender my realtor is recommending so we will look for 2-3 other "local" lenders to get quotes from. This is the only part that doesn't sit well with me but I know it would be illegal for her to influence a lender and they also cannot choose appraiser as it goes to a pool assignment. I figure we won't close the gap and then see where we go from there. I didn't pay a fee for the first appraisal so that's a plus at least.

Your realtor is adamant because they don't want to lose 3% of $600,000. That's $18,000. Yeah, I'd fight for that too. But while they are fighting to get a check, you should be fighting to know the true value.
Appraised value does equal market value, at least in theory, that is exactly the number we are trying to ascertain with most mortgage related reports. However, contract price does NOT automatically equal market value. For many possible reasons. If it did, why ever get an appraisal?

I am reading between the lines here, but my hunch is YOU don't care what its 'worth', you just want the house. That's fine. Your life, I get it. But your realtor's comments makes it sound like they have 'relationships' with some local appraisers through the lenders to 'hit the values'. BAD idea on your part.

If you TRULY want the house, but also TRULY don't want to overpay, find your own local appraiser to perform a review of the existing report, or just get another appraisal ordered, if the seller will allow--just for YOUR peace of mind. Is $400 or so really an issue when looking at a $600,000+ purchase?

Good luck...

 

[Michigan CG]

If you TRULY want the house, but also TRULY don't want to overpay, find your own local appraiser to perform a review of the existing report, or just get another appraisal ordered, if the seller will allow--just for YOUR peace of mind. Is $400 or so really an issue when looking at a $600,000+ purchase?

Good advice considering the lender who ordered the first appraisal and how they pick their appraisers.

 

[Dublin ohio]

local lender/appraiser

Do you mean a local bank or just a local mortgage broker. Quite a difference. It seems you have a copy of the appraisal. Where was the appraiser from.

 

[KStoFL]

Good advice considering the lender who ordered the first appraisal and how they pick their appraisers.

Agreed. We 100% don't want to overpay and even tonight we were still considering cancellation unless price meets appraisal. Worst case, we are going to go with the local lender we find, and not any recommended by realtor. The advice given is good and as much as we love the house, we also should realize there can always be another. We are not in a time crunch to move or on any schedule. I will update with what route we went and what result was. THANK YOU!

 

[KStoFL]

Do you mean a local bank or just a local mortgage broker. Quite a difference. It seems you have a copy of the appraisal. Where was the appraiser from.

Chase ordered the appraisal, and the appraiser was local, but I am told big banks farm out work at a fee of $450 to me, but only pay about $150 to appraisers while local lenders pay higher and appraisers know the market "better'.?