Worried about appraisal

[Restrain]

If you can go FHA, I would really look hard at doing that. Much easier to deal with an FHA loan, better long-term financing, less down, etc. The extra 5% does not apply to FHA. Also, less probability of the lender playing games with fees, etc.

 

[fivealive]

Ok, glad there are some people with Oregon experience! Here are answers to some of your questions.

1) The house. It's in the Collins View / Palatine Hill are north of the Tyron Creek State Park and west of Lewis and Clark College. It's about 1000 ft northwest of the intersection of Terwilliger and Boone's Ferry.

2) Why buy now? Interest rates have been at historic lows, and we plan on living in the house for 10 years or more. We currently rent, and it's horrible, but we don't have to sell a house to buy one. In a declining market, the buyer has pretty incredible negotiating power. I just got a new job in Lake Oswego, and I'd really like to be closer to work.

Since we're planning on holding the property for at least 10 years (if not more), it's more important for us to get a lower interest rate rather than a lower price. For example, if the market prices fall 25% but interest rates go up by 1% (i.e. 5.5% to 6.5%), the end result over the course of a 30-year loan is the same.

Thanks for all the good advice. I think we will start the ball rolling with another lender just to have a backup plan. Thanks!

Here's something interesting for you Portland folks as well. Based on the latest case-schiller data, here's a fun graph I made:

 

[Workbox]

Everything is a risk right now. It does not matter if you buy now or later. The question is, how much risk can you tolerate? And yes, don't let the Bankers make you think we are the boogie man. I good appraiser can make the difference in you loosing or making Thousands. If you can Hire an Appraiser first, then Realtor agent second. We are honest in our opinions of the house.

 

[Margaret Treat]

Hello All,
Great graph Fivealive. I think your wise in predicting a drop before we appreciate again. Everything I have been reading has been saying overall declines will continue (some up to 30%) for a while.

I think you also have to pay close attention to each market segment. From Government Camp to the North Coast Counties and with all the PDX metro area in between, RMLS is reporting only two markets declining; Milwaukie/Clackamas and Mt. Hood/Government Camp. Now, these are very broad numbers but there are some segments within these area's doing well, some even showing modest appreciation.

I love the area you're moving to and think it's like NE PDX. It's proximity to the metro employ and services, L&C, Lake O, and in general the older homes and neighborhood appeal will keep demand more in line with supply. I haven't done anything there in a while so I am not sure about numbers but I think it's got some strong features.

I know others have said it but order an appraisal on your own. Our rates are $350-450 in the PDX area. A cost easily recovered when you don't pay to much for the home. Find someone that will take the time to do it right. They will develop a scope of work for your assignment and you will get some great info, for example the real square footage. Some agents list the owners estimate of living area, EEEEEKKKKKKK!!!!!!!!!!!!!

Being the buyer in this market gives you much of the control. If they won't work with you on a fair price let them drag the divorce on and keep fighting without you. There will be another seller happy to barter for a fair price.

 

[Margaret Treat]

Oh, one more thing. OSU Beavers is right on about WF. Customer service is not their strong suit. The fact that you had to come to a forum of appraisers for answers tells me you wanted more info than they were providing. Get used to that if you stay with them.

I recommend two of my clients to friends. One is a bank and one a mortgage broker. I then make sure I am not involved in the deal but I know they are in good hands. I know those clients well enough to know they will have good appraisers for my friends. I think your on a good track exploring other options. Good Luck! Margaret

 

[fivealive]

Got the appraisal results today. Came in $18,000 higher than what we paid, with full FHA legitimacy, so no issues at all! I was actually not expecting that, but alright, I'm not going to complain (rubber stamp maybe, I dunno...) I read through the 25 page appraisal report, and it seemed very thorough though.

Lessons learned: 1) Bid low, low, low 2) Buy in a good neighborhood so you'll have some great comps

Thanks everyone. I've learned a lot about the appraisal process and what you do. Interesting stuff. Cheers!


Edit: Also, the appraisal marked the market for that area as "stable," supply and demand "in balance," and marketing time in the "3-6 months" range.

 

[KD247]

... Came in $18,000 higher than what we paid...

Congratulations on your new home!!! Good thing the appraiser didn't pay much attention to your contract price!

We have relatives who moved from Southern California to Lake Oswego and they love the area.