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what does this mean to you?

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Diego Lopez

Thread Starter
Member
Joined
Sep 11, 2006
Professional Status
Certified Residential Appraiser
State
Florida
"The appraiser failed to reconsile the $287,540 sales price with the $300,000 value conclusion."
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
Without more information it doesn't mean a thing.

Did you fail to properly reconcile the approaches to value you utilized? Did you improperly complete one, two, or all three approaches to value? Are your values from the approaches used so dissimilar to not be believeable?

Give us more information.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Why did it sell for $287k if its worth $300k? $12,500 is real money in some circles.
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
"The appraiser failed to reconsile the $287,540 sales price with the $300,000 value conclusion."

My guess is that the appraiser offered no comment regarding the difference between the opinion of MV and the contract sales price.

The difference between the two numbers is not huge, BUT, if the contract price were, say, $237,540 vs. an opinion of MV of $300,000, do you suspect that the appraiser might want to offer a comment or two regarding the difference between the two? Different numbers--same principle.
 

Greg Bell

Senior Member
Joined
Jul 7, 2006
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Louisiana
The buyer got a deal , it happens and so what.Either make the loan or shut up...
 

lizhorvath

Member
Joined
Dec 11, 2003
Professional Status
Licensed Appraiser
State
Michigan
My thoughts also, Greg.
I personally don't agree with appraising a property for the sales price. I appraise properties for what they're worth - regardless of what someone's paying for it. I think to do otherwise is a disservice and frankly, fraudulent.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
They are asking that he comply with SR 1-6 and SR 2-2 b viii. Nothing fraudulent about asking for something that he should have already done.
 

Lawrence R.

Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
I am sure the underwriter is wondering if the difference is a deal, or the evidence of a declining market that is not reflected in sales that may be 90-180 days old.

They are asking you to reconcile the possibility that you have reported the market price of a house from 6 months ago that has steadily fallen by 1-2% a month for the last 3 months.

They may want to just make the loan and shut up, or maybe they want to make the loan a a 5-10% lower LTV.

What box did you check? Stable? And if so, are you sure?

That is what they are asking for.
 

farmguy

Member
Joined
Jun 27, 2007
Professional Status
Banking/Mortgage Industry
State
Texas
Greg and Liz,

USPAP aside - appraisal done for lender, market is not what it used to be in most places, appraiser says a property is worth more than it is selling for, lender asks "Why would you sell something for less than it is worth?" and you say "make loan or shut up"
 
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