VA Tidewater

[johnjoslin]

Hello out there,

Does anybody now if the VA keeps metrics on purchase appraisals to determine what the percent is of appraisals coming in at the sales price by city? If so, would they tell me what a standard deviation is for my area?

I believe I just saw a post stating that 26% of VA appraisals do not come in at sales price.

I just invoked tidewater for a new home purchase where the buyer wanted to tile each room and 99% of homes in the area do not have this feature which made his total upgrades much higher than typical. I saw the emails from the client (I was one of a few in the cc line) and they weren't happy. The operations manager even email'd me and basically inferred that this never happens (coming in under the sales price).

26%, What gives? This client could not have 26% coming in under sales price.

aj

 

[CindyR]

Sure it happens. They are not going to tell you that. And new home builders are just as likely as anyone else to reduce the price to sell the home and close the deal. Have seen a lot of that lately on new construction VA loans here in Phoenix.

 

[Mike Garrett RAA]

Even more common would be for the buyer to bring cash for the up grades. Stand your ground if you think you are correct.

 

[Jim Onderisin]

I don't know the answer to your question. Ten percent or less of my purchase-money mortgage lending decision appraisals require Tidewater procedures.

 

[Jim Onderisin]

By the way, I don't communicate with anyone regarding the appraisal or appraised value except the staff appraisal reviewer (SAR). That saves everyone a lot of grief.

 

[Don Clark]

Hello out there,

Does anybody now if the VA keeps metrics on purchase appraisals to determine what the percent is of appraisals coming in at the sales price by city? If so, would they tell me what a standard deviation is for my area?

I believe I just saw a post stating that 26% of VA appraisals do not come in at sales price.

I just invoked tidewater for a new home purchase where the buyer wanted to tile each room and 99% of homes in the area do not have this feature which made his total upgrades much higher than typical. I saw the emails from the client (I was one of a few in the cc line) and they weren't happy. The operations manager even email'd me and basically inferred that this never happens (coming in under the sales price).

26%, What gives? This client could not have 26% coming in under sales price.

aj

Not in my market. We have a heavy VA Purchase market with at least 60% of sales being VA. VA sales are always at or above the market value for a neighborhood. It all depends on whether or not there is a savvy real estate agent doing a proper CMA. Some shoot for the moon, well above the highest sales in a neighborhood or market. That is about 5% and my appraisals are about on the same track, about 5% end up with a notification of possible below the sales price(Tidewater). That has not changed much since 2002 when TI was a beta test in my market, The Tidewater area of Virginia.

 

[Mike Garrett RAA]

New home sales are difficult, IN MY MARKET, in that the builders raise prices almost monthly. I always try to use one sale from the same builder, one sale from a competing builder, and then one resale. Almost without exception the resale will be the lower end of the value range and I weight the other two sales and trend to the higher end of the value range with consideration given to the contract on the subject property. Works well in a stable to increasing market.

Like Don, I don't have many cases where my opinion of value is below the contract price. The exception is re-finance where Tidewater doesn't apply anyway.

 

[Mike Kennedy]

http://appraisersforum.com/showpost.php?p=1895343&postcount=57

 

[johnjoslin]

That's about where I guess I am - 5% or thereabouts. I really hadn't thought about it until I saw the 26% figure in one of the posts here. My impression in the local markets is that the realtors have been suggesting to the sellers that they need to be realistic because the buyer has to have an appraisal.

Thanks

aj