Bill would let appraisers 'round up' home values

[JSmith43]

I wonder if Fannie used the word "Stigma" in response to appraisers writing in asking about the "Stigma" of REO's

How many times did you write?

 

[J Grant]

I did not write them, but their response was prefaced with a statement that they were clarifying use of REO's as comps in response from questions from appraisers and lenders.

.

 

[Charles Cales]

As a realtor, appraiser and house flipper, I see this from all sides. I have had two seperate purchases for my latest flip shot down by the appraisal. The appraisers are using all REO/short sales as comparables for my subject and adjusting about a 3rd of what I actually spent renovating the property and adjusting nothing for the fact that mine is truly arms-length. As a realtor I can tell you that buyers absolutly will pay more for a standard purchase than a REO/shorsale: time/ as-is / spuds/ clue report. These are all considerable factors outside of just the homes comparative conditions. So I'm stuck with my flip that everyone wants to buy but wont appraise. I think appraisers are so shell-shocked these days, and so afraid of having to explain themselves to there AMC or an underwriter that they wont do the extra work to explain why they didn't use REO/shortsale of adjust for the sale conditions. I think next time I get an offer, maybe I should ask the lender to order a complex appraisal? Maybe its just too much work for the average appraisers normal fee?

Let's all remember that we are supposed to etimate the subjects most probable sales price on the open market , and let the lenders hedge there own bets.

 

[Terrel L. Shields]

As a realtor I can tell you that buyers absolutly will pay more for a standard purchase than a REO/shorsale: time/ as-is / spuds/ clue report.

thank you thank you...another "duh" moment...too bad so many appraisers cannot see it. Some buyers simply will not look at an REO.

But you are also right... Let the lenders have wiggle room but don't try to finesse the value out of the appraiser...not our job.

 

[Kyle77]

?

In what market are the people dumbassed enough to not purchase an REO at a discount?

In my neck of the woods there is minimum 27% discount with or without needed repairs. There is a gazillion reasons why and it's a little shocking that some appraisers of all people do not get it. I really can't imagine a market where that the majority of the population will pay the same for these properties as any other. Maybe it will drag the market down but there will still be a discount for these properties almost all of the time vs. non reos.