FHA Appraisal: No Value given for Inground Pool

[Webbed Feet]

If the water is hot why do we need to heat it. :new_all_coholic:

For the same reason we walk or drive on a parkway and park on a driveway. Or have air conditioners when there is nothing wrong with the condition of the air, it's just not the best temperature.

 

[ackiej25]

Thank you for all of the replies. I'm sorry if my question annoyed some of you but I truly am a first time home buyer and don't know much about the appraisal process. The house is located in Montville, CT on a quiet cul de sac. It was listed for 257,775. The house was on the market for 10 days and after we saw it we made an offer of 261,000 with the seller paying 6,000 towards closing costs. The appraisal came in at 255,000. Our real estate agent(29 yrs experience) and the listing agent were floored, as were the owners. The house is 20 yrs old and extremely well maintained. It is 1880 sq ft. It also has 1 acre of beautifully landscaped property. Even the home inspector said that the house was exceptional. I just find it hard to believe that the appraiser couldn't come up with an additional 6,000 in value. Thank you, again, for all of your time and consideration.

 

[redfish]

I would not even consider buying a home with a pool. I really want a four car garage though...... and a pub style bar in the basement.

 

[NORTON]

It was listed for 257,775. The house was on the market for 10 days and after we saw it we made an offer of 261,000 with the seller paying 6,000 towards closing costs. The appraisal came in at 255,000. Our real estate agent(29 yrs experience) and the listing agent were floored, as were the owners. The house is 20 yrs old and extremely well maintained. It is 1880 sq ft. It also has 1 acre of beautifully landscaped property. Even the home inspector said that the house was exceptional. I just find it hard to believe that the appraiser couldn't come up with an additional 6,000 in value.

your agents get paid if it closes.....and they don't if it don't....they would also be floored if your checked bounced....but they wouldn't debate if the check was worth 6k more..or less....you got an appraisal of less than 1%, less than the list price.....what were they hoping for? full price or no deal?

regarding the owners being floored....really....do they know the difference between a house value difference of less than 1%? if so....ask them for their creditentials / licenses.

regarding the home inspector...there is a correlation between well maintained homes selling above those which are not....but there is not a correclation between what a guy who checks the insulation and appliances...and his ability to value real property.

if it was listed for 257k.....why did u want to pay more?...did that also floor the current owners? or does their ability to determine value only work on the way down...and not up?

I just find it hard to believe that the appraiser couldn't come up with an additional 6,000 in value...do u think appraiser's when asked....JUST COME UP WITH MONIES?...IF SO....JUST TELL HIM WHERE TO LOOK.

IF 261K - 6K = 255K....AND THAT IS WHAT THE APPRAISER CAME UP WITH...ARE THE SELLERS STILL FLOORED THAT THE HOME IS WORTH EXACTLY WHAT THEY WERE WILLING TO SELL IT FOR REGARDING NET RESULTS?

 

[Riick]

After I bought my house, did an extensive search for value of that beautiful pool that came with it.
Sales data at that time showed that in value range (c.2001 and $250k) it was worth minus $5,000.
Here in Delaware, we're a little farther South, and so we get a little more use out of a pool than you would in Connecticut, and thus it's "more valuable".

Cost does not equal Value

 

[Michigan CG]

First of all, to my fellow appraisers, remember that this is a moderated forum and all posts have to be approved before they "go public". Some who want to rant and rave will waste their time because your post may not get approved. Food for thought.

To the OP the reason I asked about contract price was because $6,000 difference in appraised value on a $50,000 home is different than on a $250,000 house.

It is my opinion that the appraiser is pretty arrogant in deciding he/she is good enough to be accurate to 2.4%.

Appraisers need to remember that the buyer is also a market participant and the offer should be considered part of the market.

Appraisers do not know all of the motivations of a buyer and what they think contributes to value.

It is my opinion that the appraiser is playing god assuming he had a copy of the purchase contract.

 

[TJSum]

Thank you for all of the replies. I'm sorry if my question annoyed some of you but I truly am a first time home buyer and don't know much about the appraisal process. The house is located in Montville, CT on a quiet cul de sac. It was listed for 257,775. The house was on the market for 10 days and after we saw it we made an offer of 261,000 with the seller paying 6,000 towards closing costs. The appraisal came in at 255,000. Our real estate agent(29 yrs experience) and the listing agent were floored, as were the owners. The house is 20 yrs old and extremely well maintained. It is 1880 sq ft. It also has 1 acre of beautifully landscaped property. Even the home inspector said that the house was exceptional. I just find it hard to believe that the appraiser couldn't come up with an additional 6,000 in value. Thank you, again, for all of your time and consideration.

Some appraisers are constantly annoyed, so don't take it personal. After the agents pick themselves off the floor, have them submit comparables to the lender to see if the appraiser overlooked anything. Especially if there is data out there with in-ground pools, to see how much this may be worth in your neighborhood. I know some appraisers may cringe at this advice, but not giving the pool any value, without an explanation does not sound right. So this should be explained better (if it is not hidden in the report elsewhere) at the least.

 

[Mike Kennedy]

It is my opinion that the appraiser is playing god assuming he had a copy of the purchase contract.

You bet he did and I concur with your opinion. (hence my tag line). $258k List, $255k OV 1% List to Sell Discount - essentially a full price offer apparently supported by the market. Assuming the comps utilized were truly comparable, the report fully explained the lack of adjustment for the pool and reliably reflected the subject's current condition (including the updated roofing) - absent an inflated contract of sale - the Market has spoken.

Should the report NOT have factored in the updated roofing and perhaps did not reflect the posters' overall condition concern - AND if there are other truly competitive sales which should have been used - they should be forwarded to the Lender for consideration.

If there aren't, and the report DID reliably account for the conditionand the pool - then........."It is what it is" and the Appraiser did not permit Sellers' Concession to influence his opinion of what the Market indicated. Again, Good Luck to the OP.

 

[ZZGAMAZZ]

All of this eridute wisdom notwithstanding, I would never fail to make an adjustment for an in-ground pool without describing my rationale in the SCA narrative--in order to explain the issue and avoid lingering questions.

 

[Riick]

It was listed for 257,775. The house was on the market for 10 days and after we saw it we made an offer of 261,000 with the seller paying 6,000 towards closing costs. The appraisal came in at 255,000.

Just to remind everyone here
The appraisal came in at $255,000, or, what the OP is paying for the property.
The ostensible price ($261,000) includes a $6,000 seller assist.
So, Net to Seller: $255,000 less costs of sale.
.