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Oh, They are desparate for money here in TX!

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Tim Hicks (Texas)

Thread Starter
Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Just this week alone.


Cash out Refi's.


Owner's estimated value: $110,000. Currently listed for $96,900 for 75 days and counting. My value will be lower.


Owner's estimated value: $235,000. Currently listed for $189,900 down from $225,000 for over 180 days now.


Owner's estimated value: $437,000. Listed for over six months until September for $379,000.

Now, tell me why some appraiser's will not put any listing history in their reports?

The second home owner called me furious for under valuing his home. I explained that obviously he really didn't think it was worth $235,000 either or he would not have it listed for $189,900. His response, "That idiot Realtor, I got talked into dropping the price. Can you raise your value if I re-list with somebody else?" Sir, my value is my value regardless of your list price, you may actually sell it near your last price.
Oh well, I am sure I am that idiot appraiser now.
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I've yet to find any lender willing to do a refi on any home, regardless of the appraised value estimate, if it is actively listed for sale.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
:lol:
They are out there... and why not? Happpy homeowner not achieveing their dream value for former home decides to rent it,
.... but needs to drop the interest rate

and hopefully cash out enough (at said dream sale rate) to put new carpets and such in their NEW domicile....

No problem says I but don't expect me not to consider that listing :twisted:
 

Tim Hicks (Texas)

Thread Starter
Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Unfortunately, we have big lenders here that will do it.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
With GA's new "Preditory Lending Laws", those types of cash out loans may very well be illegal. :mrgreen:
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
We have lenders who will make the loan even if the property is currently listed.

I just got a really good (bad) one....knew it was going to happen sooner or later. Refi in the Hayman Wildfire area (137,000 toasted acres). Seems the borrower failed to mention the fire to the mortgage company and then feels the property is worth 20% more than what the assessor is saying.

I said, "no problem, I can do it...my fee is twice what I would normally charge and it will take 30 days". Guess what....they still want it!
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
It is not just Texas I bet we'll be seeing all over. Have 4 in our office that are trying to refi & they Refi'd last year Tell me there saving money.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
You take the decrease in value for homes in the $250-400's (appx) then you add in the fact that the builder is still in the subdivision, has reduced his base price and is adding in significant concessions (in some cases $0 move in), and then you have to tell the homeowner that he is $50K upside down on his 1 year old home.

Roger
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
The desparation for cash is not only in TX ! I'm seeing lots of equity lending ads in town as well as the usual re-fi enticements. Got order yesterday for new home, completed and moved-into in late August, and now 10 weeks later there is a presumption that the home already has an additional 14% increase in value (h/o's estimate on order) above that purchase price (attained at 100% financing). Huh, 14% in 2 and 1/2 months......and the builders have their radio ads offering heap-big package incentives to buy now...."we'll make your first 6 months of payments". Perhaps, perhaps, those folks finished their 896sf of basement in the last 10 weeks, even though this builders highly suggests people wait 3 years for warranty duration before people cover over basement floors and walls. Client initially wanting a drive-by, but order was successfully upgraded to full appraisal ......as the county does not even have its field data of (this) house size in their database ! ! P.S.--highest sale within 1 sq. mile of subject over last 6 months is $10K less than this owner's "estimate".
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Hi Ross,

I've had four appraisal requests in my area within the past month where the homeowners wanted to do a cash-out refi, and all of them were homes that I appraised less than a year ago, two of them less than six months ago. They all wanted a higher value than their previous appraisal, and there's no way that higher values can be justified.
I noticed today that two of those same homes now have 'for sale' signs in their front yards.

The market is getting very ugly up here in the high country, and we're just starting into the traditionally slow season. No doubt in my mind that I need to gear up soon on doing REO work. :cry:

BTW...had my first crash and burn of the winter season this morning. There was about 3" of snow covering a steeply sloped asphalt driveway on a mountain home I inspected this morning, and of course it was solid ice under the snow. My feet went straight out from under me, landed hard on my arse and lid about 6 ft. down the hill on my back before I finally stopped. Lost some skin and bruised the h*ll out of my knuckles. Now it looks like my fist made contact with somebody's teeth, but at least my camera didn't get broken. :lol:

Dee Dee
 
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