Hopeful2021Buyer
Freshman Member
- Joined
- Sep 25, 2021
- Professional Status
- General Public
- State
- Florida
Hi All,
Hoping someone can calm me down as this week as been awful and I'm still livid after reading the VA appraisal report for the new construction home I was hoping to purchase, but not feeling confident that much is going to change after the ROV because, well, we're talking about the VA.
So here's the thing. I live in Ocala (Marion County 34476). Back in May I sold my own home (a 4/3 2282SF Brick beauty on a .41 lot) to someone on a VA loan that I was also able to help cover closing costs for them since the VA appraisal came in for higher than my listing price ($298K) and the market in our area was taking off. Because of this I didn't worry too much about when it came time for the VA appraisal on the new home I was trying to buy.
After losing out on several bids I started looking at new construction as there's a ton of it in the area known as "The SR 200 Triangle". This is easily the fastest growing area in Marion County and the housing craze has just accelerated it. My prior home was through Adams and I visited them, as well as DR Horton and new inventory was already booking up and they told me prices in the brochures were going to increase about $30-$40K once those homes were finally listed, and that's what pretty much has happened. My focus was around the 1600-2000SF homes where I could have a fenced in yard for the dog (my last house the lot was too large and the builder didn't clear the back lot and it became too much of a hassle to try to develop it so I let the next owner who wanted the extra land deal with it).
After searching I found a local reputable builder that was building in a newer one street development about 2 miles from my previous home. I signed a contract in May for $280K for a 1725SF 3/2 on .20 lot that had a lot of upgrades/fixtures, I believe I was the first person who got a crack at this new model so no bidding was involved, except I had to provide an earnest deposit. The home was projected to be due sometime around October, so after looking at some short-term rentals near where I work in Gainesville, I decided to ride it out in an extended stay hotel. That worked until football season started, but I managed to make it work for the time being as it still came in slightly cheaper.
Anyways, I got notice a couple weeks ago to submit the VA appraisal fee, which I did, and then yesterday my lender contacted me saying they needed me to provide a hardship letter to include with their additional comps to appeal the appraisal. I was a little surprised this had come in for less as I didn't bid up any prices and was certain from Zillow recent sales, pendings, and current listings, the contract price was more than fair. When I asked my lender what the appraised value came in at, my jaw nearly dropped: $237K. There is no way, I mean NO WAY, that is a accurate assessment of market value in this area. I'll gladly take help/assistance from any realtor who wants to help me find on Zillow a similar new home/new sqf/quality for just $135/sqft. in this area It ain't happening. Even the crappy Ocala Value home builders are charging $155 sqft for inferior work of a similar sized homes. The appraiser only included comps from 12/20 and older. They also listed the pricing trend for the area as "Stable" instead of "Increasing". Um, what?
Unfortunately I don't have an extra $40K to cover that shortfall and will have to walk if the ROV appeal fails. This seems really unfair as I can't fathom how anybody in my area will be able to secure a VA loan in this area if appraisals aren't going to reflect the rapid market changes. In just the past two months, there have been multiple sales of homes at $160-$180 per square foot of similar size, but less quality than the home I'm trying to buy. And I doubt after this ordeal the builder I'm trying to purchase from will want the hassle of dealing with the VA again. I can't even find decent rental homes in the Alachua, Marion, Levy, and Gilchrist areas for less than $2K and that's about the average price for a 2br/2ba rental with a pet in the apartments.
Really livid with this whole process and hoping another appraiser can chime in with why this would happen. Also, what is the success rate of ROV appeals? Looking online it doesn't seem very successful, but this just seems so egregious.
Hoping someone can calm me down as this week as been awful and I'm still livid after reading the VA appraisal report for the new construction home I was hoping to purchase, but not feeling confident that much is going to change after the ROV because, well, we're talking about the VA.
So here's the thing. I live in Ocala (Marion County 34476). Back in May I sold my own home (a 4/3 2282SF Brick beauty on a .41 lot) to someone on a VA loan that I was also able to help cover closing costs for them since the VA appraisal came in for higher than my listing price ($298K) and the market in our area was taking off. Because of this I didn't worry too much about when it came time for the VA appraisal on the new home I was trying to buy.
After losing out on several bids I started looking at new construction as there's a ton of it in the area known as "The SR 200 Triangle". This is easily the fastest growing area in Marion County and the housing craze has just accelerated it. My prior home was through Adams and I visited them, as well as DR Horton and new inventory was already booking up and they told me prices in the brochures were going to increase about $30-$40K once those homes were finally listed, and that's what pretty much has happened. My focus was around the 1600-2000SF homes where I could have a fenced in yard for the dog (my last house the lot was too large and the builder didn't clear the back lot and it became too much of a hassle to try to develop it so I let the next owner who wanted the extra land deal with it).
After searching I found a local reputable builder that was building in a newer one street development about 2 miles from my previous home. I signed a contract in May for $280K for a 1725SF 3/2 on .20 lot that had a lot of upgrades/fixtures, I believe I was the first person who got a crack at this new model so no bidding was involved, except I had to provide an earnest deposit. The home was projected to be due sometime around October, so after looking at some short-term rentals near where I work in Gainesville, I decided to ride it out in an extended stay hotel. That worked until football season started, but I managed to make it work for the time being as it still came in slightly cheaper.
Anyways, I got notice a couple weeks ago to submit the VA appraisal fee, which I did, and then yesterday my lender contacted me saying they needed me to provide a hardship letter to include with their additional comps to appeal the appraisal. I was a little surprised this had come in for less as I didn't bid up any prices and was certain from Zillow recent sales, pendings, and current listings, the contract price was more than fair. When I asked my lender what the appraised value came in at, my jaw nearly dropped: $237K. There is no way, I mean NO WAY, that is a accurate assessment of market value in this area. I'll gladly take help/assistance from any realtor who wants to help me find on Zillow a similar new home/new sqf/quality for just $135/sqft. in this area It ain't happening. Even the crappy Ocala Value home builders are charging $155 sqft for inferior work of a similar sized homes. The appraiser only included comps from 12/20 and older. They also listed the pricing trend for the area as "Stable" instead of "Increasing". Um, what?
Unfortunately I don't have an extra $40K to cover that shortfall and will have to walk if the ROV appeal fails. This seems really unfair as I can't fathom how anybody in my area will be able to secure a VA loan in this area if appraisals aren't going to reflect the rapid market changes. In just the past two months, there have been multiple sales of homes at $160-$180 per square foot of similar size, but less quality than the home I'm trying to buy. And I doubt after this ordeal the builder I'm trying to purchase from will want the hassle of dealing with the VA again. I can't even find decent rental homes in the Alachua, Marion, Levy, and Gilchrist areas for less than $2K and that's about the average price for a 2br/2ba rental with a pet in the apartments.
Really livid with this whole process and hoping another appraiser can chime in with why this would happen. Also, what is the success rate of ROV appeals? Looking online it doesn't seem very successful, but this just seems so egregious.
