Help! VA Appraisal came in $40K less

[KYLECODY]

Not to mention, if it was after Tidewater and the appraiser did not raise the value, more than likely, the RLC did an ROV and raised the appraised value to $260,000. That is the official VA appraisal now, the first value by the VA Fee panel appraiser is irrelevant if so. For all we know, the field office sent an appraiser from the local office to field review it, and that was the max the Review Appraiser raised it to, after looking at ALL the data available. If the OP wants to sic his state senator on VA, good luck with that!

Most of the DR Horton communities around here are "lifestyle" communities with all sorts of things included in the HOA fee, including activities, landscaping, dog ballet lessons, etc. Some of them are even age restricted to 55+, so I would not want to go out of the development unless I need a competing builder, etc. It does not matter to an appraiser what the builder is "pricing" similar homes at.

How much extra do I have to pay for dog ballet lessons? My pit bull isn't very graceful but she sure is fast. Do they have a community dog track team too?

 

[KYLECODY]

4955 SW 116th PL - 3/2 1799sqft $326,000 sold 8/15- This is in a community called Marco Polo. It was the one that came the closest to the quality upgrades I had. It was within the appraiser's defined neighborhood boundary for the property, but he says he omitted it because it was "out of price range". Not sure what that means.

To me it sounds like he doesn't have a valid reason to exclude it so he is just saying garbage. He should of put some reason it would appeal to a different typical buyer rather than that.

5808 SW 109th St Rd 3/2 1534sqft $279,900 sold 9/3 - This less than a mile from my house trying to buy. Not too many quality upgrades but it was similar in age. The appraiser ommitted it because of the lot size (it say on a little over a half-acre whereas my lot would have only been 1/5 acre), but I don't believe the builders cleared the entire lot as I drove by and there's still tons of trees in the back that would have to be cleared and there is no sod/irrigation system.

I find it hard to believe the lot size would attract a different typical buyer, but I don't know your area.

8732 SW 49th Circle 4/2 1498sqft $279,990 sold 9/15 - This is a freeport model from DR Horton that sold in Greystone Hills. It's the farthest of the properties from the one I was trying to buy. The builder shot this one down saying it was "smaller". They also mentioned that there were amenities not included in the new development (such as a community pool). How much of a price adjustment would that be?

Community amenities could come with a higher HOA fee. Most of the time that I see this in my area it is a buyer preference thing, may be different in the climate in florida. Some people may prefer not having these amenities if there is a lower HOA. I would think if the builder thought a community pool had a substantial impact on what homes could sell for they would put one in if possible. So a smaller home sold for $279,990 and his more dated sales that are more similar in size sold in the 230s? I could understand it maybe if he claimed the area had superior market appeal. Is it within his neighborhood boundaries?

The appraiser rejected all the tidewater comps. Apparently, despite prices increasing nearly 20% in the past nine months they weighted all properties equally and marked the pricing market as stable.

I would also note that the new construction housing probably is more dated due to older contract dates typically.

I would think the report would carry more weight if at least a couple more recent sales were used and adjusted accordingly, but as i said before, I do not know the area.

I understand your frustration and sorry it didn't work out for you. With all the time and effort you put into these posts you could of been out door knocking trying to find a new, non listed home to buy at a terrific price?

 

[jay trotta]

The home is worth $280K. The market clearly defends that. Had the house existed in September 2020, then yeah, it would have been worth $237,000. But then the buying craze started with all the CA/NY buyers flooding FL with boatloads of cash and paying top price for practically anything since supply has been low. That $237,000 house last year is not $237,000 now. Case in point one of the 3 comps the appraiser used was the builder's very first home in the development that went under contract in Sep 2020 and closed in December 2020 for $237,000. That one is a 3/2 1675sqft. In July the builder began building another model for that same house and priced it at $269,000 from what the market was selling over the past few moths, and just a few weeks ago, raised the price to $279,900 which is the same price of the model being built that I am trying to buy. Even with these increases, if anyone bothers to look at the other developments in the area being built out by Adams, DR Horton, Highland, Triple Crown, etc, the price increases are still less than those major builders. DR Horton wants $275,000 base for their Freeport model 1600sqft (Greystone Hills), Adams wants $285,000 for their 1755sqft model (Brookhaven) and they have the sales from the prior months to support this.

I thought I read in another thread you were transitioning to realtor mode to make more money. Ok, go to Zillow and search Zip Code 34476 for at least a 3/2 b/w 1500-2100 sqft., take a look at the current homes on the market and what's sold in the past 6 months and tell me what you think I can actually try to make an offer on and not run into the same appraisal problem I'm facing now. Nearly every new listing is $275K or more for just 1500sqft and there have been plenty of cash buyers driving up the prices in this area and most of FL in general to support that. You can't even go into rural Levy or Putnam County anymore and find price breaks.

A VA Loan requires no money down. It's part of the entitlement. I can easily afford this home based on my projected mortgage payment and I have a gov't job with decent salary. I have never, nor will ever default on a payment. I don't have 20% to put down, but I'm not poor either and am good with saving my money. This purchase was part of a wise financial decision since my monthly mortgage costs ($1550) and other recurring debt wouldn't even approach 30% DTI. But if I am forced to go rent, the 2br rentals in the area all at least $1800 or more, not including pet fees, trash removal, etc, and rental houses are going for $2,500 or more for a house of similar size. So yes that is quite unfair.

It's what happens when you have an "unprecedented" market; and yes in Fla and elswhere rents are getting out of control. It will be interesting when this all comes to a halt and how the Loss's will be handled.

 

[Tiffany Gibbons]

How much extra do I have to pay for dog ballet lessons? My pit bull isn't very graceful but she sure is fast. Do they have a community dog track team too?

Well, it turns out I was thinking of Del Webb, not DR Horton and I mixed up doggie play dates and ballroom dancing lessons. But I am sure you can find the right lifestyle community for you and your pit bull to enjoy, lol. Some of the HOA fees I see seem crazy high to me but have child activity and care included for parents to get a break, community garden plots, bee keeping, you name it!

 

[shrubberyvaluation]

I understand your frustration and sorry it didn't work out for you. With all the time and effort you put into these posts you could of been out door knocking trying to find a new, non listed home to buy at a terrific price?

I'm not sure what door knocking would do, I suppose you could get lucky and that person knows of a new construction build at a terrific price, doubt it though. Better to ask builders directly, and I doubt will find a terrific price without a time machine.

 

[Tiffany Gibbons]

I understand your frustration and sorry it didn't work out for you. With all the time and effort you put into these posts you could of been out door knocking trying to find a new, non listed home to buy at a terrific price?

And why does it have to be a new house? The builder is the only one who is getting a good deal on those. I've seen people get positively giddy over picking out exactly where they want an electrical outlet for a $250 change order, picking out their choice of the two "granite-which is really quartz" choices, the custom shade of "luxury waterproof vinyl plank flooring", etc. Get a buyer's agent to help you find an "almost new" house with most of what you want for a reasonable price, like a listing where someone is relocating for a job. I am seeing cash buyers here who have sold much more expensive property in another state outbidding anyone who has to get any kind of financing to pay for a home. Money talks.

 

[KYLECODY]

I'm not sure what door knocking would do, I suppose you could get lucky and that person knows of a new construction build at a terrific price, doubt it though. Better to ask builders directly, and I doubt will find a terrific price without a time machine.

Right, I meant new as in different. Concentrate efforts on a different house, new to you, not new construction.

 

[KYLECODY]

And why does it have to be a new house? The builder is the only one who is getting a good deal on those. I've seen people get positively giddy over picking out exactly where they want an electrical outlet for a $250 change order, picking out their choice of the two "granite-which is really quartz" choices, the custom shade of "luxury waterproof vinyl plank flooring", etc. Get a buyer's agent to help you find an "almost new" house with most of what you want for a reasonable price, like a listing where someone is relocating for a job. I am seeing cash buyers here who have sold much more expensive property in another state outbidding anyone who has to get any kind of financing to pay for a home. Money talks.

See above. Yeah the upgrades/options are how they make their money. Want to see a design center rep cringe on new construction? Tell them you're an appraiser and there just to pick colors but you'll pass on their amazing upgrades/options. I've done it twice. No "upgrades" other than whatever free money they threw at me. Do it all after the fact at roughly 1/2 to 1/3 of the price. They no likee. One of the funniest to me is how they will paint the whole interior white for the base price but if you want any color its like as expense as repainting after the fact..It doesnt cost the builder anymore to add a splash of color to 20 gallons versus base white.

 

[Hopeful2021Buyer]

I'm not sure what door knocking would do, I suppose you could get lucky and that person knows of a new construction build at a terrific price, doubt it though. Better to ask builders directly, and I doubt will find a terrific price without a time machine.

Just when I think this whole situation can't get worse, it does. Salt in the wounds.

The second Jamestown model the builder has under new construction on the same street, similar size, and lot as mine (J-town is Lot 2, I was lot 15) is under contract with FHA buyers for the $270K price. You can see a video of the first Jamestown the builder built last year that closed in December for $237K which is one of the 3 houses my appraiser used in severally undervaluing the Raleigh model I was trying to buy. The Raleigh has superior finishes and more upgrades than the Jamestown and yet the appraiser who did my home found a way to value it at less than what it even sold last year.

The appraisal on this Jamestown was done last week and the report came back today. It appraised for....get this.... $290,000! Of course it was appraised by someone else and wouldn't you know it, they used comparables provided by the realtor that were rejected by the appraiser that did my house.

The builder's realtor told me I should at least get my appraisal fee back for my clearly faulty appraisal.

I forwarded the info to the VA asking how the hell two different appraisers looking a two similarly sized homes on the same street in the same neighborhood can end up over $50K off. If we were talking million dollar homes, that's probably not uncommon, but these homes are only around $300K to begin with.

But this is all normal, right. It just can't be that my appraiser was incompetent. The Jamestown that just got appraised should have also come in at $237K, right?

 

[Zoe]

Okay, report back. Have you been able to get an actual VA employee on phone? I can tell you how to do it. Once you get there ask for an appraiser.

No 2, your telling bits and pieces. Have you been able to discourse with the appraiser?

Tell me about the Reconsideration of value you did with your lender.