VA Appraisal 60k below offer price

[KYLECODY]

"The appraiser used 3 comps, the most recent from February, the other two from September. Two of them were 1 mile away, one was 2.5 miles away.
The comps that were sent during Tidewater were all from the last 1-3 months, and were 5 miles, 4 miles, and 1 mile. I'm a bit baffled why he didn't include the one that was 1 mile away as it seems similar (at least to me), and definitely supported the price."

This is important. So now we have 3comps (minimum) in report that were considered plus the tidewater comps. There were probably many more that were considered on listings and sales. I can't explain the one sale nearby not being mentioned. If you have 3 comps plus tidewater comps that are similar to the subject, don't hang your hat on one comp.

A comp "supporting the sales price" usually is realtor speak for look heres one at 500k too...It may be nearby but if its much larger, better, higher quality, views, lot size, or a remodeled property its not comparable. Its just a sale, often they just pick by the numbers and think thats "proof"..

 

[KYLECODY]

The only reason the seller went with us was due to him also being a veteran. We were up against 7 offers, at least one of them was cash and higher than our offer, waived appraisal contingency, waived inspection.

Maybe, bet the realtors told you that? We all love and support veterans but if a seller has a higher, cash offer with no inspections or appraisals he/she would be ridiculous to refuse that and go with a financed offer. It makes no sense. As an investor, realtor and appraiser I don't know anyone that would turn down a higher cash offer..

 

[glenn walker]

Maybe, bet the realtors told you that? We all love and support veterans but if a seller has a higher, cash offer with no inspections or appraisals he/she would be ridiculous to refuse that and go with a financed offer. It makes no sense. As an investor, realtor and appraiser I don't know anyone that would turn down a higher cash offer..

In my 35 plus yearsweI have accepted two VA offers that were lower than other offers we had received and thats because they were verifiable Combat Veterans and I thank those Vets. BUT having grown up in a Military Family-Father WW-1I and Korea-Numerous -others also combat-so I know the difference between those guys and ones who just joined to get a job. So I don't thank a guy who walked the Long beach Pier for two years for the Coast Guard ( he was my best friend ) He joined because he couldnt find a job-We used to laugh and ask him what he was looking for on that Pier ? He said I don't know they just told me to call if I saw anything suspicious. Anyway we will discount to a real veteran but not to just anyone. Its like everything you have good and bad and not all Vets are good guys-But if Ya risk your life I am all in : )

 

[Tru Red]

Tidewater count this week was two.
One was $50,000 short on a home listed at $650,000. Here is what Addendum No. 1 in the contracts stated:

1). Buyer agrees to pay $1,500 over most competitive offer, up to $725,000.
2). Buyer also agrees to pay $20,000 over appraised value or purchase price, whichever is lower.

Doesn't affect my job one little bit.
This home would have sold for maybe $500,000 a year ago. Typical 1,500 sf ranch style home a 7,000 sf city lot.

 

[Tru Red]

Essentially what we’ve been learning in our search is that in our market we have to be willing to quell a large appraisal gap with cash, if there’s any hope of getting a property. But of course that’s a tough pill to swallow (never mind potentially not financially wise).

Absolutely spot on. I have found that many appraisers are simply too stupid or ignorant to grasp what you have stated in your comment.

Some appraisers have even argued the following comment: it's not up to the lender to assume the additional risk above and beyond the appraisers opinion of value. If the Buyer has the cash to make up the difference, great. Buyer's are typically more than willing to place other people's money at risk.

In a perfect world all loans would require 20% down. This way, the Buyer always has some skin in the game.

 

[Tru Red]

BUT having grown up in a Military Family-Father WW-1I and Korea-Numerous -others also combat-so I know the difference between those guys and ones who just joined to get a job.

Also....spot on comment. My dad, 20 year Navy WWII (Pearl Harbor) and Korean War. My brother and his wife both 20 year Air Force. Me, long term DOD employee.

Some friends of mine 2 to 5 years just for a job. Not the same for even a second.

 

[Ariba]

Tidewater count this week was two.
One was $50,000 short on a home listed at $650,000. Here is what Addendum No. 1 in the contracts stated:

1). Buyer agrees to pay $1,500 over most competitive offer, up to $725,000.
2). Buyer also agrees to pay $20,000 over appraised value or purchase price, whichever is lower.

Doesn't affect my job one little bit.
This home would have sold for maybe $500,000 a year ago. Typical 1,500 sf ranch style home a 7,000 sf city lot.

So you are saying the appraised value of the house must be $705,000 for this deal to work at $725,000 for a house that was listed at $650,000?

 

[Tru Red]

So you are saying the appraised value of the house must be $705,000 for this deal to work at $725,000 for a house that was listed at $650,000?

Roundabout those figues. Actual names (numbers) have been changed to protect the guilty.

 

[LesPaul59]

I love what I am reading here in the replies.

When is someone going to educate realtors about GLA? Probably never. I wish there were more motivation for the people listing and selling houses to figure out the GLA so that there are fewer problems down the road. Why can't we be on the same page?

 

[glenn walker]

I dropped off VA --Done its stupid