desktop appraisal WAY LOWER than field apprasial?

[Walter Kirk]

"Desktop Appraisals" are not dependable, they are shortcuts that large lenders use to save money.

 

[Webbed Feet]

Are desktop appraisals usually this far off?

Based on your information there is no way to tell what is "far off" and what is not "far off." In fact, there is no way we can even tell if your lending sources staff are even so much as using the correct terminology when they said "desktop appraisal." They may have used an automated valuation model (AVM) that was purely computer generated only

 

[Peacemaker]

Last time I took out a 2nd the credit union pulled 3 AVMs and used the lowest one (to make the most conservative measure of LTV). When the loan officer told me what it was I kind of made a choking noise, because a model match to my house, 2 doors down, had just sold $60K higher than the number she told me. It was only after I expressed my surprise that she explained that they pull 3 AVMs and use the lowest one. So could be something like that going on, that you aren't aware of. It was fine with me, I wasn't borrowing much.

And yeah, they can be way off. Even if your lender did get a full appraisal they may opt to only loan on the lowest of their value indicators, and that could very well be an AVM.

 

[Mike Plumlee]

You wouldn't let your doctor diagnose that pain in your chest without an office visit ... would you? An AVM or a desktop (to a lesser degree) is like going on the internet, answering a 10 question survey, and having the website tell you that you have a blocked aorta.

 

[powerhouse]

I do desktop appraisals as a kind of a comp check before doing an actual appraisal, to see what the neighborhood market is like. There is usually more disclaimer verbiage on one of my desktops than actual useful data. Crazy to think someone would loan on a desktop value, as it could easily go the other way as well.

 

[Carnivore]

Sotwell,

I dont llike desktops myself, but there is a need in the market place for this kind of valuation. I dont think banks should use them for actual mortgage loans funding. I do think they should use them to help the consumer decide on paying for a more complete typical mortgage lending residential report.

I dont know where your property is located, but in south Charlotte for example, $500K is not a custom home. It is a nice home, but not custom.

Gaston, Union and Cabarrus couties have seen significant across the board declines in market value since 2007. Higher end homes have suffered especially since the market for that price point is much smaller outside mecklenburg County.

The Waxhaw/Weddington area of Union county in the 400K + market has tanked. The higher you go in price point the worse it gets. There is not one specific reason in Union County why this has happened, but mortgae fraud enabled by frenzied buyers and low doc/no doc loans are the primary cause.

Gaston County to the East has a very small 400K market so values dropped quickly in the price point.

Cabarrus is better then Union or Gaston, but again, 400K price point market is small and demand is way down.

All lake properties are down significantly in Norman, Mtn Isle and Wiley.

Good luck to you.