http://www.nytimes.com/2009/09/27/realestate/27cov.html Real estate agents, mortgage brokers and appraisers all say that the low-ball appraisal has become increasingly common in today’s unsettled market. The problem is even more pronounced when homeowners are hoping torefinance a mortgage or get a home equity loan, because there is no current agreed-upon sale price as a benchmark, they say. Low... [more]
http://www.nytimes.com/2009/09/27/realestate/27cov.html
Real estate agents, mortgage brokers and appraisers all say that the low-ball appraisal has become increasingly common in today’s unsettled market. The problem is even more pronounced when homeowners are hoping torefinance a mortgage or get a home equity loan, because there is no current agreed-upon sale price as a benchmark, they say.
Low appraisals may reflect reality, since prices in New York City have dropped by as much as 30 percent in the last year. But agents, mortgage brokers and even some appraisers say they suspect that some appraisals are mistakenly low. ....
.....at a time when local expertise is crucial, recent changes in national lending practices have resulted in the assignment of many appraisers who are not familiar with local markets, brokers and appraisers say. Some real estate agents say that in recent months they have fielded requests regarding Manhattan listings from appraisers from New Jersey, Suffolk County and the Hudson Valley.
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Response by Riversider
almost 17 years ago
Posts: 13573
Member since: Apr 2009
What in my opinion is missing is why other lenders are not stepping up to fill the void. If a responsible loan is say at 75% LTV, but the appraisal is way under, then another lender should be rushing in and eating what is essentially a "free lunch".
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Response by chuckl1233
almost 17 years ago
Posts: 122
Member since: Jun 2007
Appraisals are always under scrutiny. They're either too high or too low, lol. It seems as if they're always wrong.
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Response by Riversider
almost 17 years ago
Posts: 13573
Member since: Apr 2009
I don't think a Real Estate ever lived who argued they were too high, at least not one involved in the transaction.
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Response by mjsalisb
almost 17 years ago
Posts: 177
Member since: Sep 2006
I was interested to note in that article that Miller Samuel is using $500 per square foot as the value for purposes of making size adjustments between apartments that are similar except for square footage. I would bet that MS was using $800-1000 per square foot not long ago for similar adjustment.
Sort of telling....
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Response by stevejhx
almost 17 years ago
Posts: 12656
Member since: Feb 2008
"Real estate agents, mortgage brokers and appraisers all say that the low-ball appraisal has become increasingly common"
Sounds like, "Wall Street bankers say their bonuses aren't big enough, and its sucks they're paid in stock."
Or unions saying, "A living wage is no lower than $100 an hour."
Funny how these "Real estate agents, mortgage brokers and appraisers" weren't complaining on the way up, when they were holding open-outcry auctions for apartments. Seems everything is at fault but high prices, out of whack with incomes and rents.
Crocodile tears.
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Response by Sunday
almost 17 years ago
Posts: 1607
Member since: Sep 2009
As a buyer, if the gap between the appraisal value and the agreed upon sale price is significant enough to be a deal breaker, then it can mean one of three things. 1. I am over paying by a lot. 2. I really can't afford it (or love it enough) if I can't put in more down payment to make up some of the difference. You might have to compromise a little on the rate because of a higher LTV. 3. The appraisal is WAY off.
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Response by columbiacounty
almost 17 years ago
Posts: 12708
Member since: Jan 2009
so...in other words...its either right or its wrong?
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Response by geomiller
almost 17 years ago
Posts: 1
Member since: Sep 2009
Or translators saying they need 12c per word, or 14c for a rush job.
Lizard tears
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Response by stevejhx
almost 17 years ago
Posts: 12656
Member since: Feb 2008
"Or translators saying they need 12c per word, or 14c for a rush job"
No - "Or translators saying they need $1 per word."
What in my opinion is missing is why other lenders are not stepping up to fill the void. If a responsible loan is say at 75% LTV, but the appraisal is way under, then another lender should be rushing in and eating what is essentially a "free lunch".
Appraisals are always under scrutiny. They're either too high or too low, lol. It seems as if they're always wrong.
I don't think a Real Estate ever lived who argued they were too high, at least not one involved in the transaction.
I was interested to note in that article that Miller Samuel is using $500 per square foot as the value for purposes of making size adjustments between apartments that are similar except for square footage. I would bet that MS was using $800-1000 per square foot not long ago for similar adjustment.
Sort of telling....
"Real estate agents, mortgage brokers and appraisers all say that the low-ball appraisal has become increasingly common"
Sounds like, "Wall Street bankers say their bonuses aren't big enough, and its sucks they're paid in stock."
Or unions saying, "A living wage is no lower than $100 an hour."
Funny how these "Real estate agents, mortgage brokers and appraisers" weren't complaining on the way up, when they were holding open-outcry auctions for apartments. Seems everything is at fault but high prices, out of whack with incomes and rents.
Crocodile tears.
As a buyer, if the gap between the appraisal value and the agreed upon sale price is significant enough to be a deal breaker, then it can mean one of three things. 1. I am over paying by a lot. 2. I really can't afford it (or love it enough) if I can't put in more down payment to make up some of the difference. You might have to compromise a little on the rate because of a higher LTV. 3. The appraisal is WAY off.
so...in other words...its either right or its wrong?
Or translators saying they need 12c per word, or 14c for a rush job.
Lizard tears
"Or translators saying they need 12c per word, or 14c for a rush job"
No - "Or translators saying they need $1 per word."