Help! VA Appraisal came in $40K less

[Tiffany Gibbons]

Now you got me thinking. As an appraiser, they can not hang their hat one sale. I deal with new builders . Still don’t like closing costs you are paying.

I think we all need to buy stock in 50 year luxury waterproof vinyl plank flooring. Whoever is behind this is a marketing genius, maybe better marketing campaign than AI has for the MAI. I have a guy tell me the other day that if his house flooded, the warranty says he would be able to peel up this floor and ready for this? Stick the same vinyl plank flooring down again, no problem. Another guy told me it was invented by NASA. Me, I'll take hardwood and tile floors, and a real fireplace, not a TV, but that's just me. I wonder if "electric" fireplaces have to be vented? That is probably an underwriter question. I have probably been in 50 houses this year with the exact same vinyl plank floors, "granite that is really quartz", and stick on subway tiles, and the sliding "Barn" doors. How do they not know that all the houses have the same things inside? How do they not know you can buy the same things at Home Depot? It just floors me, but then I guess we are loose in subdivisions every day and they go in the model home and in the home center to choose their "colors" of white and gray and that is it. But that is why I'm an appraiser and not a sales person, I guess.

 

[shrubberyvaluation]

Ok, so I got more of the full story today. But I have a question first.

I was under the impression that if a request for valuation adjustment of more than 10% required a field review and the original appraiser was bypassed. If the request was less than 10% then it gets forwarded to the original appraiser for review. Is this correct or am I mistaking something or percentages.

Here's the thing. I thought it was the VA that had revised the value upwards from $237K to $260K, but apparently they sent it back to the original appraiser as if the request was only 10% or less. When I requested a Reconsideration of Value, they rejected it based on the fact they submitted it to the original appraiser and that the VA defers to local authority and accepted the revised amount by the appraiser.

Here is the exact wording of what I received:

VALUE APPEAL
I have reviewed the appraisal in question and the VA Fee Appraiser used five sales located in the Subject's immediate market area. All adjustments are reasonable and are within VA guidelines. I have also reviewed the value appeal which included additional sales. The additional sales were not superior to the comparables used in the report. AVM does not support the increase in reasonable value.

On the first request, the appraiser reviewed the comps provided and felt they warranted to be a part of the report. The report was increased by the appraiser to $260k based on the evidence provided in the 1st request. The ROV was not needed at that point. The VA reverts to local authority. The appriaser had revised the report and that was the new reasonable value. The decision for the 2nd level request denied, reasonable value stands.

VALUE APPEAL DENIED
Reasonable Value $260,000.00 stands.

Ok, fine, so I asked them how the hell 3 homes on the same street (just found out the Madison being built next to mine also came in above contract price $274K) of similar size, square footage, and lot and appraised for full/over the contract purchase price while my home was superior to the other models. It's not like the builder's realtor submitted different comps. What was deemed "inferior" comps was acceptable under alternate financing means (FHA, Conventional).

I

You said before only 3 comps were in the report. Did he add 2 comps that you provided to make it 5? This is telling a different story than you said before that he did not include any of the sales in your ROV. I'm confused did the 2 added comps not change anything in the reconciliation and they just added 10% to it after this?

 

[Hopeful2021Buyer]

You said before only 3 comps were in the report. Did he add 2 comps that you provided to make it 5? This is telling a different story than you said before that he did not include any of the sales in your ROV.

I'm wondering that two. Did he add 2 of the realtor's comps in adjusting the value? There's only 3 comps on the original appraisal sheet. The builder's realtor submitted an additional 5 comps. If he added them, I don't know which ones. I just found out this afternoon that the report was sent to him. That info I posted came through at around noon today.

 

[Salty]

I think we all need to buy stock in 50 year luxury waterproof vinyl plank flooring. Whoever is behind this is a marketing genius, maybe better marketing campaign than AI has for the MAI. I have a guy tell me the other day that if his house flooded, the warranty says he would be able to peel up this floor and ready for this? Stick the same vinyl plank flooring down again, no problem. Another guy told me it was invented by NASA. Me, I'll take hardwood and tile floors, and a real fireplace, not a TV, but that's just me. I wonder if "electric" fireplaces have to be vented? That is probably an underwriter question. I have probably been in 50 houses this year with the exact same vinyl plank floors, "granite that is really quartz", and stick on subway tiles, and the sliding "Barn" doors. How do they not know that all the houses have the same things inside? How do they not know you can buy the same things at Home Depot? It just floors me, but then I guess we are loose in subdivisions every day and they go in the model home and in the home center to choose their "colors" of white and gray and that is it. But that is why I'm an appraiser and not a sales person, I guess.

HAHAHA The sliding barn door craze is so funny. I am seeing sliding barn doors everywhere. In many instances they look out of place and just plain silly.

 

[Zoe]

I'm wondering that two. Did he add 2 of the realtor's comps in adjusting the value? There's only 3 comps on the original appraisal sheet. The builder's realtor submitted an additional 5 comps. If he added them, I don't know which ones. I just found out this afternoon that the report was sent to him. That info I posted came through at around noon today.

You will get final report after ROV. If you don’t, ask for it. You are tripping me out.

Your telling me appraiser changed value after ROV request? That’s fine if they did.

 

[Zoe]

Still don’t like closing costs. Let builder pay them or real estate agent.

 

[Zoe]

Your under contract now. So, you have decisions to make. You can lose earnest money or go with appraised value and do your deal. You can back out most likely without losing earnest money depending on contract you signed.

 

[Zoe]

Still don’t like closing costs you are paying

 

[Zoe]

You could have negotiated your closing cost being paid in your transaction

 

[Zoe]

How many lenders did you shop?