Posts

Appraisers Ain’t A.M.C’s (Explained); Subjective vs. Objective Too

“Hey Rich, I need a $500,000 appraisal to make this refi work; there’s an extra $300 for you if you can push the value to $500,000…” That was the entire schtick of a loan officer I knew back in the day (prior to the 2008 meltdown). He was friends with an appraiser who would push […]Read More

Don’t Finish Your Basement (or Garage or Patio) IF…

“Your godda***d appraiser only gave $7,500 to my basement after I spent 85,000 f**king dollars finishing it! Go f*** yourself!” So said a borrower to me years ago after he reviewed an appraisal of his home that he clearly did not like (to put it mildly). Knowing that “the customer is always right,” I tried […]Read More

Appraisers Can’t Push Values; Must Avoid Reviews/Cuts

APPRAISAL COMES IN LOW We had an appraisal come in slightly under contract price this week. What made it a surprise was the fact that there seemed to be ample comparable sales to support the value (unusual in this market, to say the least). So, when the appraisal came in low, both agents, the seller […]Read More

Options When Appraisal Comes in Low

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. Here are a buyer’s options when an appraisal comes in lower than the purchase price: 1. Renegotiate a price reduction with the seller. This option […]Read More

Loans Are About Rules/Regulations & Not About “Making Sense”/Logic

We have a very strong borrower whose loan is held up right now b/c the appraiser is unable to find rental data (for a rent survey) that is necessary for an FHA triplex appraisal. We and the borrower (and the appraiser) are extremely frustrated b/c we all know market rents are much higher than available […]Read More

What To Do If Seller Refuses To Do Required Repairs?

We are often asked what to do when a seller refuses to perform required repairs. This happens when appraisers call out repair items like missing floor coverings when we have a VA purchase requiring a clear Section I, or when a seller is a Bank selling an REO. Our only choice in these situations is […]Read More

Appraised Value Is Not Market Value; Solution?

We have a transaction in which two buyers (both are clients of ours) are more than willing to pay $1.2 million for a property in Oakland with an appraised value of only $950,000. There are probably more buyers in the wings willing to pay a similar price. The appraisal came in so low b/c of […]Read More