Help! VA Appraisal came in $40K less

[Zoe]

If I were the OP I'd go through New Day. They don't require appraisals.

Just try to do in on a credit card. LOL

Local finance company will do it. What's 10-15% interest? I don't care. LOL

 

[Zoe]

Investments are made on the front end. Lust is a desire of the body. Love is a desire of the person.

 

[glenn walker]

Its a New Build and we are seeing a lot of that out here in California-The Building Material and Labor Cost have skyrocketed and new construction is now often selling for 25% to 35% over resale BUT the catch is not many closed new comparables and so now Builders are not even accepting VA buyers because they know they won't appraise. The heavy down and cash buyers are still around so VA offers are not accepted no matter what they offer. This is probably the worst market we have seen in over 35 years for BUYERS- We are also Brokers and now recommend our Clients not sell anything unless they are going to rent or leave the State . This poor Veterans story is a common one out here and no the RLC is not going to help her/him as hey will not place Pressure on the VA Appraisers value . All She/he can do is pray that a Rich Uncle Suddenly Dies. .

 

[Tru Red]

Unfortunately I don't have an extra $40K to cover that shortfall and will have to walk if the ROV appeal fails. This seems really unfair as I can't fathom how anybody in my area will be able to secure a VA loan in this area if appraisals aren't going to reflect the rapid market changes.

UNFAIR?

Absurd!................because you want to purchase a home using someone elses's money with a government backed guarantee........for $40K more than it is worth?

What if values start going down? They have in the past.

Save some money and buy a home when you can afford to put some skin in the game. I'm a vet too. I did.

Unfair.........SMH.

 

[Hopeful2021Buyer]

UNFAIR?

Absurd!................because you want to purchase a home using someone elses's money with a government backed guarantee........for $40K more than it is worth?

What if values start going down? They have in the past.

Save some money and buy a home when you can afford to put some skin in the game. I'm a vet too. I did.

Unfair.........SMH.

The home is worth $280K. The market clearly defends that. Had the house existed in September 2020, then yeah, it would have been worth $237,000. But then the buying craze started with all the CA/NY buyers flooding FL with boatloads of cash and paying top price for practically anything since supply has been low. That $237,000 house last year is not $237,000 now. Case in point one of the 3 comps the appraiser used was the builder's very first home in the development that went under contract in Sep 2020 and closed in December 2020 for $237,000. That one is a 3/2 1675sqft. In July the builder began building another model for that same house and priced it at $269,000 from what the market was selling over the past few moths, and just a few weeks ago, raised the price to $279,900 which is the same price of the model being built that I am trying to buy. Even with these increases, if anyone bothers to look at the other developments in the area being built out by Adams, DR Horton, Highland, Triple Crown, etc, the price increases are still less than those major builders. DR Horton wants $275,000 base for their Freeport model 1600sqft (Greystone Hills), Adams wants $285,000 for their 1755sqft model (Brookhaven) and they have the sales from the prior months to support this.

I thought I read in another thread you were transitioning to realtor mode to make more money. Ok, go to Zillow and search Zip Code 34476 for at least a 3/2 b/w 1500-2100 sqft., take a look at the current homes on the market and what's sold in the past 6 months and tell me what you think I can actually try to make an offer on and not run into the same appraisal problem I'm facing now. Nearly every new listing is $275K or more for just 1500sqft and there have been plenty of cash buyers driving up the prices in this area and most of FL in general to support that. You can't even go into rural Levy or Putnam County anymore and find price breaks.

A VA Loan requires no money down. It's part of the entitlement. I can easily afford this home based on my projected mortgage payment and I have a gov't job with decent salary. I have never, nor will ever default on a payment. I don't have 20% to put down, but I'm not poor either and am good with saving my money. This purchase was part of a wise financial decision since my monthly mortgage costs ($1550) and other recurring debt wouldn't even approach 30% DTI. But if I am forced to go rent, the 2br rentals in the area all at least $1800 or more, not including pet fees, trash removal, etc, and rental houses are going for $2,500 or more for a house of similar size. So yes that is quite unfair.

 

[Tru Red]

you were transitioning to realtor mode to make more money

I have been a licensed RE broker since 1991 and we own a local real estate business. From 1995 to 2005 I was an SVP/Commercial lender at a regional bank doing SBA loans. My wife is an active attorney that specializes in real estate. I have been a VA appraiser for 15 years. So.....I have heard this all before from Buyers and the public in general.

I realze it's an entitlement. There are still guidelines the VA, the appraiser and the veteran has to follow. As a taxpayer I appreciate the guidelines, since they are designed to protect public funds. The appraiser is also protecting public funds by providing an opinion of value based on guidelines that have been used for many years. Just because Zillow, or Redfin or you, thinks the house is going to be worth more in the future does not mean the VA should provide the gurantee. I was raised to believe a home buyer should have money in the game. It used to be 20%. Even if it's only 10%, that's still skin in the game. At the end of the day, what I believe does not matter. If a lender is willing to give you a loan for 100% or more, that's their decision.

Buyers wanting to spend $20,000 to $200,000 of lenders money over what a qualified appraiser suggests the home is currently worth is getting a bit old.

The appraisal process is not perfect. It's like trying to drive a car forward while looking in your rearview mirror.

All I can say is we will have to agree to disagree.

Good luck.

 

[Zoe]

I have been a licensed RE broker since 1991 and we own a local real estate business. From 1995 to 2005 I was an SVP/Commercial lender at a regional bank doing SBA loans. My wife is an active attorney that specializes in real estate. I have been a VA appraiser for 15 years. So.....I have heard this all before from Buyers and the public in general.

I realze it's an entitlement. There are still guidelines the VA, the appraiser and the veteran has to follow. As a taxpayer I appreciate the guidelines, since they are designed to protect public funds. The appraiser is also protecting public funds by providing an opinion of value based on guidelines that have been used for many years. Just because Zillow, or Redfin or you, thinks the house is going to be worth more in the future does not mean the VA should provide the gurantee. I was raised to believe a home buyer should have money in the game. It used to be 20%. Even if it's only 10%, that's still skin in the game. At the end of the day, what I believe does not matter. If a lender is willing to give you a loan for 100% or more, that's their decision.

Buyers wanting to spend $20,000 to $200,000 of lenders money over what a qualified appraiser suggests the home is currently worth is getting a bit old.

The appraisal process is not perfect. It's like trying to drive a car forward while looking in your rearview mirror.

All I can say is we will have to agree to disagree.

Good luck.

Buyer needs to realize the VA has lowest loss ratio of any loan program in the Nation. That FACT indicates many things.

 

[Zoe]

BTW, I truly appreciate your service. I mean that with all my heart.

 

[Zoe]

I have been a licensed RE broker since 1991 and we own a local real estate business. From 1995 to 2005 I was an SVP/Commercial lender at a regional bank doing SBA loans. My wife is an active attorney that specializes in real estate. I have been a VA appraiser for 15 years. So.....I have heard this all before from Buyers and the public in general.

I realze it's an entitlement. There are still guidelines the VA, the appraiser and the veteran has to follow. As a taxpayer I appreciate the guidelines, since they are designed to protect public funds. The appraiser is also protecting public funds by providing an opinion of value based on guidelines that have been used for many years. Just because Zillow, or Redfin or you, thinks the house is going to be worth more in the future does not mean the VA should provide the gurantee. I was raised to believe a home buyer should have money in the game. It used to be 20%. Even if it's only 10%, that's still skin in the game. At the end of the day, what I believe does not matter. If a lender is willing to give you a loan for 100% or more, that's their decision.

Buyers wanting to spend $20,000 to $200,000 of lenders money over what a qualified appraiser suggests the home is currently worth is getting a bit old.

The appraisal process is not perfect. It's like trying to drive a car forward while looking in your rearview mirror.

All I can say is we will have to agree to disagree.

Good luck.

You being a RE agent too indicates many things to me. I appreciate your comments. I am not a RE agent. but your perspective tells me your company has a very good reputation and are very honest with people.

 

[Zoe]

The home is worth $280K. The market clearly defends that. Had the house existed in September 2020, then yeah, it would have been worth $237,000. But then the buying craze started with all the CA/NY buyers flooding FL with boatloads of cash and paying top price for practically anything since supply has been low. That $237,000 house last year is not $237,000 now. Case in point one of the 3 comps the appraiser used was the builder's very first home in the development that went under contract in Sep 2020 and closed in December 2020 for $237,000. That one is a 3/2 1675sqft. In July the builder began building another model for that same house and priced it at $269,000 from what the market was selling over the past few moths, and just a few weeks ago, raised the price to $279,900 which is the same price of the model being built that I am trying to buy. Even with these increases, if anyone bothers to look at the other developments in the area being built out by Adams, DR Horton, Highland, Triple Crown, etc, the price increases are still less than those major builders. DR Horton wants $275,000 base for their Freeport model 1600sqft (Greystone Hills), Adams wants $285,000 for their 1755sqft model (Brookhaven) and they have the sales from the prior months to support this.

I thought I read in another thread you were transitioning to realtor mode to make more money. Ok, go to Zillow and search Zip Code 34476 for at least a 3/2 b/w 1500-2100 sqft., take a look at the current homes on the market and what's sold in the past 6 months and tell me what you think I can actually try to make an offer on and not run into the same appraisal problem I'm facing now. Nearly every new listing is $275K or more for just 1500sqft and there have been plenty of cash buyers driving up the prices in this area and most of FL in general to support that. You can't even go into rural Levy or Putnam County anymore and find price breaks.

A VA Loan requires no money down. It's part of the entitlement. I can easily afford this home based on my projected mortgage payment and I have a gov't job with decent salary. I have never, nor will ever default on a payment. I don't have 20% to put down, but I'm not poor either and am good with saving my money. This purchase was part of a wise financial decision since my monthly mortgage costs ($1550) and other recurring debt wouldn't even approach 30% DTI. But if I am forced to go rent, the 2br rentals in the area all at least $1800 or more, not including pet fees, trash removal, etc, and rental houses are going for $2,500 or more for a house of similar size. So yes that is quite unfair.

Okay, you have options. Tell me more about the neighborhood you want to live in. Tell me what are competing areas. Can you provide the address? I will not address value with you but tell me a little more. The address may help a little. There are the principles of homogeneity and heterogeneity. There are many principles that go into appraisal practice. Tell me more about the subdivision you want to live in and it's competing areas.

Give the address. Give all the physical characteristics of the property you want.

Your trying to make something complex simple. It don't work that way.