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FannieMae...This Bud's for you

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A

Anonymous

Thread Starter
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Fannie honey :wink: ,

Your right in concluding that appraisals always are within
99% of sales price. I'm reviewing sales and I find
a sale for $128,000 on a property that had been listed
for 336 days for $114,900.

Do you review these appraisals? I know you can add
closing costs and loan fees up to what 6%....but I
figure your also paying for 5% of the downpayment.

I've seen this sort of thing with VA, but now its
creeping into the the conventional market.

I once told a realtor I wouldn't/couldn't value a FHA
property for more than its list price....haven't done
an appraisal for him since, he only uses the local
number hitters now.

4/5 years to retirement
elliott
 

Modred

Freshman Member
Joined
Mar 11, 2002
Professional Status
General Public
State
California
A few years ago, I did a VA appraisal of a house that had been listed for sale for 8 weeks at a price of $180,000. The sale price price was $187,000. I checked the purchase contract and found that the seller was paying $8,000 of the buyer's costs.

To me, the listing of the property is a very important piece of market data and, unless there are access or other problems, the market value in this case should not exceed $180,000.

Fortunately, the lenders do not select the appraiser for VA appraisals.

Modred


Fannie honey :wink: ,

Your right in concluding that appraisals always are within
99% of sales price. I'm reviewing sales and I find
a sale for $128,000 on a property that had been listed
for 336 days for $114,900.

Do you review these appraisals? I know you can add
closing costs and loan fees up to what 6%....but I
figure your also paying for 5% of the downpayment.

I've seen this sort of thing with VA, but now its
creeping into the the conventional market.

I once told a realtor I wouldn't/couldn't value a FHA
property for more than its list price....haven't done
an appraisal for him since, he only uses the local
number hitters now.

4/5 years to retirement
elliott
 
Joined
Jan 16, 2002
I often wonder about Fannie and their stats.....What about the appraisals they never see because the deal was killed by the appraiser ????? They should stick that up their stat !
 
Joined
Jan 16, 2002
Correction to previous post:

I often wonder about Fannie and their stats.....What about the appraisals they never see because the deal was killed by the appraiser ????? They should stick that stat up their fannie.
 

Alan Simmons

Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
It is my understanding the 98% - 99% comment is an urban legend. It is true that some high-ranking suit made the claim in a speech, but he later admitted just talking off the cuff and that he did not have any real data to support the claim.

I lost ALL of my FHA work last year. After months of conflict, I was tiered of being pushed and they were tired of not getting the (N or AD) value.

It was interesting to see who picked up this work. It was not the local AW.
 
A

Anonymous

Thread Starter
Guest
I have always wondered who at Fannie Mae made the comment about most appraisals being at or above the sales price. Of course the appraisals that are sent to Fannie Mae meet the sales price. The appraisals that did not meet the sales price were never sent to Fannie Mae, the applications for those properties were rejected before being submitted to Fannie Mae, or the mortgage broker got another appraisal.

Following Fannie Mae's logic we should fire thousands of cops because the crime rate is down.
 

jtrotta

Senior Member
Joined
Jan 16, 2002
JB
you quack me up :lol: and for the rest of the crew; don't know much about FNMA and their involvement; but FHA/VA are 99% of the time over funded; they require minimal down payment and more than likely have the highest ever consistant forclosure properties. For some time I thought how could that be and they still exist; just thinking here, but if you in $10-$15k per closing, and then it defaults within 12 months, you get to reproduce the fee's all over again. Lets for kicks assume a sale price of $60k; now, if you can repordcue the fee's 4 to 5 times, just think of the money your producing without ever getting rid of the property, and if anyone decides to stay you've just increased your profit margin significantly.

Maybe it's just me 8)
 

Pat Butler

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Elliott-- do you think that people ever list their house for less than its market value? I do, and that's why a house can sometimes appraise higher than its list price, contrary to your statement.

However, its exposure time is critical. Those underpriced houses would generally have much less exposure time. If they were on the market for a normal amount of time then the probably did sell at their market value. But I would have to take exception with your comment about you never appraising an FHA property higher than its list price. And why would FHA be unique as compared to any other financing anyway? Market value is market value, irrespective of financing.

Pat
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
One reason that homes are within 9% of selling price is that realtors know good and well what a home will appraise for and price the homes accordingly. They don't want to lose a sale either.
 
A

Anonymous

Thread Starter
Guest
Pat,

I don't have any problem appraising some homes
for more than their list price.

But THIS property SOLD for more than list price.
Other than a hot new Thunderbird, people shouldn't
pay more than list price.

Something is funny when the sold price is higher
than the list price, especially by 11%.

elliott
 
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