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Freshman Member
Mar 15, 2003
hey I have a very Big Question. :?:
I am trying to buy a house that I very much want. :D
The seller was asking 95,000.00 and we talked to them and we were getting it
for 89,900.00 and they were paying a 1,000.00 on the closing...........
when they went to appraise the house my bank appraised the house at
82,000.00 with the excuse that the railroad tracks being at the end of the
houses back yard took 10% off the appraisal Price. The people who own the
house ... not even 6 months ago had an appraisal at 95,000.00 for the home
we are trying to buy what is the problem here ..... would I be stupid if I
went to the higher company to get a loan for what we had agreed on...... is
it a normal thing to take off for railroad traks lining against the
property.... and normal for the amount to be 10% off.... I'm lost I don't
know a thing about appraisals.........I really want the house but I also
want to do the right thing with out feeling cheated....... how do I find out
which appraisal is right

there are things in the area that point it both ways also one house appraised for 110,000.00 and the taxes say 82,000.00 on this house

here in Moraine, Ohio :?
Jan 17, 2002
Professional Status
Certified Residential Appraiser
Find an appraiser in the area, or who works that area, that you know or is recommended by someone who knows the quality of the appraiser's work.

Have your appraiser, who is paid by you and works for you, compare the two appraisals and do their own research on sales and the affect of the railroad on the value of the subject property.

I would expect a railroad adjoining the subject property to have some effect on value. How much depends on the area and the type of rail traffic. A subdivision Home adjoining a railroad with lots of slow moving trains at all hours of the day and night would not effect the subject the same as a rural property with an occasional high speed train. Some people even use trains to note the time of day or night.

The type materials carried on the trains also can effect value. Dangerous or toxic materials as opposed to lumber, cars, etc.

If for some reason you don't want to spend the money on an appraiser you might be more specific about the location of the subject property and hope for someone on the forum to be knowledgeable about the area.

The best idea I can think of is hire your own appraiser to advise you on how to deal with the situation.

Also consider, This problem might have come up because you are not supposed to have that house.

Best of Luck. Please join me in a prayer for all those people who are going in harm's way for freedom's sake.

walt kirk

If the owner had the property appraised for $95,000 why did they agree to sell it to you for $89,900 minus closing costs? I think that your bank's appraiser is saving you and the bank from paying too much for the property. If you doubt the negative influence of the close proximity to the tracks try sleeping when a 100 car unit train thunders past your yard!

Richard Carlsen

Elite Member
Jan 15, 2002
Professional Status
Licensed Appraiser

Did you see the so called $95,000 appraisal or is it something the seller told you? And was it an appraisal by a licensed appraiser or a guess by a real estate agent? Big difference you know.

Before you jump to any conclusions, ask the Seller for a copy of the $95,000 appraisal and see what happens. If one is not forthcoming, you might have just discovered a little selling technique called The Phantom Appraisal Price.

Another question I have for you is, why not believe the value of the appraisal for your loan? Are you really interested in paying over Market Value for the house or are you really interested in thinking you got a great deal? Be realistic about this. If you want the deal, come up with the extra bucks by having the seller take back a second for the difference between what you can finance and the selling price. If you want to pay Market Value, take the appraisal back to the Seller and renegotiate the sales price. If the Seller won’t budge on the price, my advice is get out of the deal as fast as you can.


Senior Member
Jan 15, 2002
Professional Status
General Public
Tracy, we have too little information. Without reviewing the appraisals and knowing the area none of us can advise you with any real competency. That being said, let me begin by saying the vast majority of appraisers are people of integrity and honesty. I am somewhat perplexed by your phrase:
my bank appraised the house at 82,000.00 with the excuse that the railroad tracks being at the end of the
houses back yard took 10% off the appraisal Price
So far as I am concerned there cannot be a 10% adjustment simply because it is customary. Unless there is supporting data to show that a 10% (and I am uncomfortable with the percentage adjustment anyway) is accurate on this particular property, then a customary adjustment of 10% is bad appraising.

The next thing you should realize, is that the appraiser is working for the bank. It is their job to ensure there is adequate value in the house to secure the loan. They hired an appraiser they have confidence in and as it is their money on the line they can chose who they want. If you can show, with a preponderance of evidence that their appriasal is wrong, then they may consider doing the loan anyway. But it is up to you to prove it. Hire an appraiser. Pay the appraiser yourself.....but remember the appraiser is hired to tell you the truth.....He is not hired to make your deal work.

If YOUR appraiser says there is an $8200.00 negative adjustment due to the railroad tracks, Thank him, then call the bank and thank the banker and his appraiser for keeping you from paying $8200.00 too much for the home. If, on the other hand, YOUR appraiser says your new home is worth $90,200, then you should take it to the bank and ask them to have both theirs and yours reviewed by an independent appraiser. The bank wants to loan you the money, so if you can show them a clean appraisal for at least the sale price, and they can have it reviewed, chances are the bank will go through with the loan. If they won't, the fact that you are prequalified and you have an appraisal in hand, you should be able to find a competiting bank to do the financing.

YOU pay for the second appraisal.....if you ask to have it reviewed, I do not think it would be unfair for you to split the fee with the bank for the review.....but be prepared to pay for it on your own.

This will probably cost you an extra $700-$1,000.....maybe not quite that much, but how bad do you want the house? How bad do you want to give almost 10 grand more than it is worth? Or would rather know than always wonder?

With your own appraisal, you will be working from knowledge. You will have all the information you will need to decide that whether or not you need to pursue the purchase of the home and for how much.

Good luck.


Bemis Pownall

3 Opinions of value

1. Homeowner $95K

2. Buyer $89K plus $1K cons.=$88K

3 Paid, Licensed, Educated, Experienced, RE Appraiser $82K

I give up? Over pay if you really want, people do it everyday..but if you dont thank the APPRAISER for doing his/her job.

Currently doing an interesting property Ive followed for 5 years. Someone paid $185, loan $165. Its worth $130(today, in a flat to appreciating market). Its headed to foreclosure..It was worth $100, 3 years ago when they didnt like my value. 3 years ago someone paid $80K and sold it for $185 the next day, NO MLS, NOT ARMS LENGTH. Now the bank cares about a real value..Greed kept the truth form the buyers.
They should walk! I would.
To top it off Ive done reviews were certain appraisers used this sale as a comp. Remember no MLS doest hit the radar for 99% of the appraisers out there..umh..
Ive notified the state and FHA..think anything has changed.
Buyer beware!

Travis McGee

Senior Member
Sep 18, 2004
why don't you get the previous appraisal, call that appraiser, have him do it for your loan.

this may be the RE side, see if the seller will negotiate price maybe 1/2 way with you and some how borrow, beg for the difference in the cash.

my RE side again. The seller may encounter this problem with another "BUYER" so it is in their best interest to also find a solution, when they have a motivated one in front of them.

SEARCH for Comps. All appraisals must be supported..with logic.


ps Good Luck

Mountain Man

Elite Member
Jan 15, 2002
Professional Status
Certified General Appraiser
# 1 rule.
You are only allowed to fall in love with a house after you own it.

Agents are SALES people, they can smell blood. :wink: Many lenders are paid on commission too! 8O
The appraiser, in the process of protecting their clients interest, may have saved your hind end. But that was not their job, it just happend that way.

:idea: Ask yourself..... who is working for me?????
Clue: No one, unless YOU hire them.
Real estate agents usually work for the seller, Loan Broker just wanna sell money, the appraiser works for the lender (the lender fronting the money, not the broker), and the closing attorney works for the lender too.


Freshman Member
Mar 15, 2003
O.K. the address of the home is 3647 Parallel Rd. Dayton Ohio 45439
The biggest reason why I have fallen in love with the house is because I have been renting it for the past 6 months and have checked other homes, since all this, and have found none comparable. even though the tracks line the yard the yard is pretty big.......... the train rides sometimes about every 1/2 hr. .... it carries cars from delphi and some times animals and grain....... it goes by at about 40 to 50 miles and hr. and at times only 2 to 5 miles an hr.........The house is considered a 2 br home with a 75% finished basement..... and there is 4 good size br down there.... I have 3 kids so the rooms are a necessity .............

also , the owners are now showing a appraisel of 95,000.00 that was made 6 months ago ... they have a copie ........ all I want to know is that I'm getting a true estimate which ever way it goes so no one is cheated .......... these people are friends of ours.....I think they would go with the lower ... if it is correct and except that they were wronged by their appraiser.......

but we need some type of evidence......

thanks for all your response :D

I really have just not known what to do :?


Junior Member
Jan 20, 2002
Professional Status
Certified Residential Appraiser
Here's what you do. Get recommendations from friends / family / banker etc on an honest / ethical appraiser in your area. If you can't do that, use your yellow pages and pick someone other than the 2 that have already done appraisals on the house. DO NOT TELL THEM ANY NUMBERS!!!!!!!!! Just hire them to do an appraisal. You should then have a credible / accurate appraisal. Again, DO NOT TELL THEM ANY NUMBERS or what any other values on previous appraisals were. If they keep asking for some type of number, dump them and seek out another appraiser.
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