Picking Comps

[maryjo313]

That doesn't mean the bank can't pass along borrower-developed information to the appraiser. So long as the info is provided with no strings attached, explicit or implicit, then info is just info.

Ah got it. So I can pass it on to my lender and they can send it to the appraiser. That makes sense, I don't expect they'd have any problem with that. Hopefully this will work out and I won't need to get another appraisal but if I do, or the next time I'm buying I'll definitely do that.

My seller agreed to split the difference in sales price we were debating over so will depend on how the dispute comes back. If after review, the appraiser still thinks it should stay as is, I'll have to make a tough decision as to whether to switch lenders or not and try for a new appraisal from a different, local lender. I'm not sure this seller is going to be willing to come down even if a second appraisal is also low, so may be a better choice to walk.

 

[George Hatch]

Just remember, you're trying to tell them these are the comps that influenced your opinion. You're not trying to tell them to use those comps in an appraisal. If your lender were to tell the appraiser the latter (they know not to do that) it could get them into big trouble.

Contract prices occasionally get adjusted as a result of appraisals. Sellers sometimes say no to the appraisal and relist the property, only to end up selling it later at the appraised value anyway. The real estate market is sometimes funny that way.

Also, there's nothing wrong with paying a little extra for a house you love. If you've got the money to do that.

 

[maryjo313]

Sellers Agent

Just remember, you're trying to tell them these are the comps that influenced your opinion. You're not trying to tell them to use those comps in an appraisal.

Ah okay, very good to know!

Someone else asked about where we heard that the short sale had condition issues, which I don't think I ever answered. That was the seller's agent that told us that. Well, not surprisingly, when we investigated it further, we found out that was another false statement from her. She also gave us incorrect numbers on the estimated repairs on the house, as we discovered when we insisted on seeing it prior to changing the contract. My realtor is angry enough to consider reporting her for ethics violations but basically, this woman is NOT a realtor full-time and apparently is "doing this for a friend" for no commission, just a $500 fee (assuming we can believe anything she tells my realtor at this point). So she does not seem to be particularly motivated about closing the deal or competent about how to negotiate.

Luckily I didn't include anything about the condition of the short sale in my dispute letter, already being suspicious that she had made that up to bolster their case on the price. I'm pretty doubtful that we'll see a change in price enough that I'd be able to continue with these people, or if I even want to now, although I don't know how much I can blame the sellers for having such a bad agent, other than being too cheap to hire a competent one. It does make us all the more annoyed at their refusal to come down to a more reasonable price, given that they aren't even paying a seller's commission.

So yeah, good lesson for people that want to cut corners when selling or buying a home. It all too often does not pay off.

 

[maryjo313]

Final Result

Just thought you all would like to know, our appeal was successful, the appraisal was revised to $200K which is right where we had estimated it to fall and will allow me to go forward with buying the house. While the seller and their agent have given me some qualms about going forward, having been looking at other homes in this area for the last 2 weeks, I really don't think I'm likely to find another for as good a price, this size and condition, anytime soon, so I do plan to go ahead with the purchase.

Thanks for the help, the information was very useful in terms of what to focus my appeal letter on, and while hopefully I won't be buying a home again for a VERY long time, got some good information should I be in that position again.