Does it ever make sense to hire an appraiser "before" you submit a bid in order to have a higher sense of confidence that your bid price is the correct one?

I recognize that you may end up "wasting" some money along the line - but pricing is such an important part of your buying strategy.

Thanks.

Normally, this sort of thing doesn't happen but I've heard of many people asking your same question. Technically, you could have a private appraisal done on the apartment of interest but then the appraiser would need to see the unit you're interested in...this might make the sellers a bit suspicious.

Just wondering, besides the obvious BIG names, does anyone know a good appraiser for the UWS? And I don't mean a broker, realator.

Topper,

Sounds like something I'd do. I like the idea. But have heard appraisals are tuff today cuz due to the slow market, comps may be stale. Nonetheless, go for it if it gives you peace of mind.

Hi ruff, how about me? I'm the best. But seriously, if I can help you out, let me know.

Thanks, all.

Not sure I see why the seller would be suspicious if I wanted to have an appraiser take a look at it. It would seem to me that that would just make it clear that I was quite serious in my interest. And it seems like basic "due diligence." The bank won't "lend" me money without appraisal - why should I "buy" without an appraisal?

Yes, comps may be somewhat stale. That is all the more reason for me to want a professional to give me his "broad" perspective as to what the place is worth. I would expect that he would be most up on pricing trends, neighborhoods, property types, etc. He also might help me in coming up with a good bidding strategy.

Any more insights and perspectives would be welcome. Thanks.

Topper--

A better way to handle things is to have a clause written into the contract that allows you to walk (or renegotiate) if the apartment appraises lower than the agreed price. Many banks are now requiring their own appraisals (often requiring two independent appraisals on higher-priced apartments). It is possible your lender will insist on a particular company to do the appraisal(s) (which you will pay for), so any appraisal you've already done won't count with regards to the loan.

You could wind up spending a considerable amount of dough on appraisals if you do your own first.

Topper -
No offense to appraisers, but I think you may be overestimating their value at this point in the process. As Squid says above, you'll be paying for two bank appraisals if you move forward anyway. Be sure to have your lawyer include an appraisal contingency in your contract, should it come to that. And a lot of appraisers are looking at the same data you can access yourself - which is closed sales and recent comps. But you should also factor in the current market, which appraisers are not trained to do. They analyze data (often brilliantly), but they can't tell you how to bid on an apartment.

But if what you want i to determine the best possible offer for the apartment - i.e. the least you can pay - I think it's worth talking to a buyer's agent. It seems like you don't want your own broker involved in the sale, but you can instead pay a small flat fee to a buyer's agent to get some great intel on the apartment. Seriously, we brokers are bored out of our skulls and want to help people make deals. Or is that just me?

Whatever you choose, it is unlikely that the seller will want you to have an appraiser in the building without an offer in place. Plus, you're showing your hand a bit with regards to how serious you are. There are other apartments out there, and you don't want the sellers to know how attached you are to the place.

Unless this is the only place you can imagine living, and you simply must have it. Is that the case?

tina24hour- you have consistently made the stupidest comment as advice to readers of this board.

Topper wants a bit of assurance that he isn't overbidding on an apartment and a few hundred bucks is cheap insurance for possibly losing hundreds of thousand of dollars. No seller these days will sign the appraisal contingency unless they know you're getting an absolute deal. Appraisals can be very subjective and skewed either way, especially if recent comps are not available. The first thing I would do is look for comps in the building and compare the unit you're looking at in terms of the floor, light/exposure, noise, and layout. The next thing I would look at is the condition and style of the kitchen and bathrooms.

As for bidding high in this market for that perfect home, I'm sure you'll find the perfect home for less in 6 months. Topper, I hope this helps.

newaccount--

I don't know which part of Tina's advice you're calling 'stupid', but most of her points are right on target. First, where have you gotten the idea that sellers "these days" would refuse to sign an appraisal contingency? Even during the market peak such a clause could be negotiated with relatively little hassle. "These days" sellers are even MORE likely to agree to buyer terms on issues like this.

Second, that "bit of assurance" won't be worth diddly if the bank appraisals don't back it up. The appraiser will basically do nothing more than eyeball the apartment, make sure major appliances are in working order (and sometimes they don't even bother to do that) and run some comps (they generally go back as far as 6 months, so if the only comps are 6 months old your appraisal could come in higher than what the property might actually sell for in today's market).

The appraiser will NOT be at all helpful in helping you decide on what number to offer.

just run your own comps -- the process is not that complex and it is only worth what one is willing to pay for it anyway

Topper,
How much would an appraisal cost? Maybe bring your appraiser with you when you view the apt so you don't have to ask seller to give the appraiser access.

Squid- you sound like a co-broker with tina24hour. New construction developments would never allow such a clause. Any intelligent seller's attorney would fight to remove the clause. Also, THESE DAYS, try asking for a mortgage contingency. Sellers may do it, but out of desparation.

Not a broker, sorry, NA, sorry.

I cannot speak from experience on new dev, but in any other RE transaction a mortgage contin is very doable. Does it take a little negotiating hardball? Perhaps. But THESE DAYS the ball is squarely in the BUYER'S court.

Scratch one of those "sorrys"... sorry. :D

Squid, are you an appraiser? The appraisal process you described is nothing of the process I know.

Thanks, all! You've given me a whole lot to think about - and probably eventually implement.

chuckl1233

hit me back with your email or website and I will check you out.

Hi ruff: ssage1976@yahoo.com

I will try to answer whatever questions you have. Thanks and be well.