Tag Archive for: appraisal

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 […]Read More

Appraisal Issues and Fannie Mae’s Collateral Underwriter; The Dreaded CU Score

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High “CU Scores” are causing appraisal issues more than ever, and creating a lot of confusion. But what is this Collateral Underwriter? This Collateral Underwriter is a property appraisal review tool that was created by Fannie Mae to provide an automated collateral risk assessment to mortgage lenders as a part of their underwriting process.Read More

Paying More Than Appraised Value? Why? Appraisal Not Market Value

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Several realtors have asked why borrowers are willing to pay over appraised value. There are several reasons that we have observed: (1) the buyer is a 27 year old social […]Read More

Options When Appraisal Comes in Low

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We have a highly skilled & fair appraisal panel, but in today’s hot housing market, sale prices are sometimes above the value an appraiser can fairly attribute to a home. […]Read More

High Loan-To-Value Financing for Well-Healed Borrowers In Hot Markets

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We often discuss high loan-to-value (LTV) financing (90% to 96.5%) with borrowers who would otherwise put down 20% or more. This is b/c they are making offers in very hot […]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 […]Read More

Condition: Old, Tired, Worn Is OK; Health/Safety/Structural Not OK

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We recently had a Realtor call us about a property that was formerly used for the “production of medicine” (aka a pot farm). He asked whether the appraiser would call […]Read More

Smart Appraisers Essential; Using Local Companies/Appraisers

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“The unique nature of the subject property necessitates going outside of the typical market area of influence to garner adequate comparable sales data.” In 1994, a really smart appraiser taught […]Read More

Collateral Underwriter & Appraisal Reviews; Bad News/Good News

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Last winter when Fannie Mae’s Collateral Underwriter surfaced, there was panic (and yes, it was panic) in the industry about what it would do to appraisals and closing-times in general. […]Read More

Two Appraisals Instead of Appraisal Review; Rush Fees Too

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We spend as much as $15,000 per month on extra appraisal fees that we as a company absorb and do not pass on to borrowers. One of these costs is […]Read More

Price Per Square Foot Analysis? Why Appraisers Don’t Use It

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Realtors and buyers often rely on a “Price Per Square Foot” analysis, but appraisers often cannot for a variety of reasons. This is a message we repeat from time to […]Read More

Strict Appraisal Rules For Comparable Sales

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Realtors often provide us with comparable sales that we (when doing rebuttals) or appraisers cannot use b/c they do not comply with appraisal guidelines. Here are some basic Comparable Sale […]Read More

Lenders ALWAYS Correlate to Lower of Contract Price or Appraisal

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One of our borrowers has been in contract to purchase new construction in Oakland for almost 9 months. His plan was to put down 10%. Now that the property is […]Read More

Unpermitted Space is OK – No Value; No Health and Safety Issues

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One of our Realtors asked us about a house in Oakland with 1,800 square feet and 4 bedrooms and 2 baths (per MLS). The problem is that the county records […]Read More