Reconsideration of Value: How to respond?

[J Grant]

There is a bias....of course. The Lender is in business to make loans. If the appraised value is 'low', they can't close the particular transaction.

Which is why lenders ordering appraisals is problematic...whether or not a loan closes is not supposed to be the appraiser's concern, the appraiser's is providing the most credible, supported MVO, and with upward lender present once again present (what was the whole point of the HVCC ?), we are right back where we were with the mortgage brokers, only now the upward pressure takes the form of an ROV .

Furthermore, it is not true that if an appraised value is "low", that a lender can't close a particular transaction, esp in a purchase. An appraisal is not low, the appraisal is MV, and the salec contract is high, or above MV, just to clarify. Anyway, in a purchase, the bueyr can put more cash down, if he wants to pay the SC price, and the loan can close, or the parties can renenogiate. And in a refi, they can rework the numbers.

Lenders, realtors, etc should not be looking to appraisers to make their deals work, when the appraiser's job is to opine MV, not make a deal work. These professionals can make a deal work by working with their buyers and sellers...they would rather pressure the appraiser though.

 

[SANDY]

The multiple offers....did you see them? You might want to see their offer. Don't you think that if multiple market participants are saying it's worth $465k and will buy it at $465k, maybe the market is speaking? You say the active is "way over price"...what is it listed for? What are the other active and pending sales looking like?

Not saying you are "wrong". Far from it. But you are 4% off of the contract price. When you think you know better than the actual buyer and seller, you need to cover all bases and leave no stone unturned. That means talking to the listing and selling agent about motivations in play for the subject and comps alike. It is very easy to be 4% off. While the form likes a single point value, there is always a reasonable range. If the contract falls within that range, I would side with the market participants. The subject contract is an indicator of value.

The NAR loves you! After all --------the buyers know what it's worth to them so if they think it's worth it who are we to tell them different.

 

[Meandering]

Well, one thing I'm hearing from some local appraisers is that they are getting work to review that is less than 3 months after the effective date. And, it may be that, some who complied with an ROV are now being reviewed because what I'm hearing is that there are some screwy comps in most of these reports, so................

Maybe it's just another way to thin the Herd.

Cert 7, read it, comply with it, mean it when you sign the report, and stand up for yourselves and the work you completed.

Because they are going to backstab you after they've made the loan and got their commission.

.

 

[JBTAppraisal]

The NAR loves you! After all --------the buyers know what it's worth to them so if they think it's worth it who are we to tell them different.

well then they should pay for the home in CASH. lol

we are the eyes and ears for the ones lending the monies....

if they need a loan then it is no longer up to seller A and buyer B it is up to Bank C!!!
once they need a loan for the home the bank is going to want to make sure they are not loaning $400,000 to buyer B for something that has a fair market value of $320,000...right?

now if they are paying cash they can pay what every they want.

agents love that when i explain that to them...no have no reply

 

[residentialguy]

The NAR loves you! After all --------the buyers know what it's worth to them so if they think it's worth it who are we to tell them different.

Hmmmm....

So the sales you use as comps don't have buyers? :laugh: :laugh: :laugh:

 

[JBTAppraisal]

Well, one thing I'm hearing from some local appraisers is that they are getting work to review that is less than 3 months after the effective date. And, it may be that, some who complied with an ROV are now being reviewed because what I'm hearing is that there are some screwy comps in most of these reports, so................

Maybe it's just another way to thin the Herd.

Cert 7, read it, comply with it, mean it when you sign the report, and stand up for yourselves and the work you completed.

Because they are going to backstab you after they've made the loan and got their commission.

.

thank you... i couldnt agree more.

 

[residentialguy]

well then they should pay for the home in CASH. lol

we are the eyes and ears for the ones lending the monies....

if they need a loan then it is no longer up to seller A and buyer B it is up to Bank C!!!
once they need a loan for the home the bank is going to want to make sure they are not loaning $400,000 to buyer B for something that has a fair market value of $320,000...right?

now if they are paying cash they can pay what every they want.

agents love that when i explain that to them...no have no reply

Yes, and to find that value, you need to consider the subject contract as well.

 

[Mike Garrett RAA]

I actually had a request for a reconsideration because my value estimate was too high. Screwed up the agents sweet short sale deal...to a friend I believe. I have had a few were the agent was able to find a sale I was not aware of. What happened was the selling broker entered the data wrong on MLS. I can't find stuff if it isn't entered correctly. I am more than willing to reconsider provided there is supporting data but in most cases the agent just sends a whole bunch of closed sales that are not truly comparable.

 

[JBTAppraisal]

Yes, and to find that value, you need to consider the subject contract as well.

I DID!!!

i did find the market value value and it was below the sales price. they gave me 1 closed comp in the ROV and it also was below the sales price AND had two more bedrooms than the subject property AND a swimming pool and spa. after it would be adjusted out is was far below the actual appraised value. so not only could they not get me a decent comp they sent me a comp that would have brought the value down!

not sure why u are making such a big deal about this??

 

[SANDY]

I DID!!!

i did find the market value value and it was below the sales price. they gave me 1 closed comp in the ROV and it also was below the sales price AND had two more bedrooms than the subject property AND a swimming pool and spa. after it would be adjusted out is was far below the actual appraised value. so not only could they not get me a decent comp they sent me a comp that would have brought the value down!

not sure why u are making such a big deal about this??

He is a shill for the realtors! He and Mentor tried to get forumnites not to use reos etc to blow realtors contracts. Be careful before you use any of his advise.