Tag Archive for: appraisal issues

Bigger House Vs. Smaller House +In-Law Unit; Price Per Acre Issues

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Several months ago, I blogged about a 3,700 square foot property that appraised for far less than the owner thought it would because it was really a 2,300 square foot main house with a detached 1,400 square foot in-law unit. The property appraised for less than expected primarily b/c the appraiser had to correlate to […]Read More

Mortgage Bank Vs. Broker Vs. Commercial Bank; There Is A Difference

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There are three primary channels for funding mortgages: (1) Commercial Banks, (2) Mortgage Banks, and (3) Brokers. There are significant differences between the channels. Commercial Banks dominated the mortgage world after the 2008 meltdown, but their market share has been shrinking in recent years. Commercial banks include Wells Fargo, Chase, Citi, U.S. Bank, and B […]Read More

Danger! Dry Rot! This Deck Will Kill You! (Condition Flags)

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We recently had an appraiser visit a condo for an “as is” purchase appraisal, and there was a large sign stapled to the deck that said: “Danger. Dry Rot. Do NOT Stand On Deck!” Needless to say, the “as is” deal came to a screeching halt until the issue could be addressed. This was a […]Read More

Major Appraisal Issues; Please Read; Not Market Value; Other Issues

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As predicted, we are seeing many more appraisal issues surface this year. A few reminders/things to note: 1. Appraised value often does NOT reflect market value. This scenario surfaces all the time: There are ten offers above $900,000, but the appraisal comes in at $850,000 b/c there are simply no “closed” comparable sales available that […]Read More

Appraisal Issues and Reviews More Prevalent in 2016

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We are seeing appraisal issues surface much more frequently lately. These include many more underwriter requests for 2nd appraisals or formal appraisal reviews, as well as low appraisals. A major reason for this is Fannie Mae’s increased scrutiny of appraisals in areas with a lot of appreciation. Fannie’s automated underwriter (DU) now calls for an […]Read More