How An Appraiser Stopped A Sale With His Bare Hands

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Many times an appraiser will ruin the home buying plans of the first-time home buyer. Across the country, agents and homebuilders are complaining too many appraisals are coming in low, scuttling deals.

Mr. Appraiser,  had sized up a four-bedroom, three-bath house in San Rafael, CA for $45,000 less than what the buyers offered to pay. A typical deal-killer for a seller.

Mr. Agent urged the lender to force Mr. Appraiser to consider several other properties that could back up the original $1,410,000 sale price. Then he tried laying on the guilt trip, telling Mr. Appraiser his valuation was going to ruin this first-time buyers' shot at the American Dream of home ownership.

Buyers beware when your agent tries to persuade the appraiser to back up his valuation by considering other properties. You'll end up potentially paying $45,000 more for the house.

"The funnest things are forbidden".-Mark Twain. But appraisers should be, because they are not funny when their valuation comes in too low.

 The National Association of Realtors says nearly 25 percent of its members has reported clients losing a sale due to a botched appraisal. The National Association of Home Builders, meanwhile, said low valuations were destroying a quarter of all new home sales. The trend is to compare distressed properties to newly built homes. Should distressed homes sales be compared with other newly built homes?














Roughly 40 percent of all home sales this year were foreclosures or short sales, meaning the property sold for less than the mortgage.
Mr. Appraiser determined the value of the property by looking at recent sales of comparable homes. He took an apples-to-apples approach. Generally, a foreclosure isn't used as a comparison for a standard sale.

"Over the piano was printed a sign: Please don't shoot the pianist. He is doing his best".-Oscar Wilde
Mr. Appraiser contend he is only sizing up homes according to the reality of the market, though he concedes its becoming increasingly harder to pinpoint the true market value of a home.

Home prices accross the state, hit bottom earlier this year and are recovering, data last week showed. But there are still many neighborhoods across the country where foreclosures and other financially distressed sales are still rising.

In neighborhoods with high foreclosure rates, values for all homes are being pulled lower than in areas where there are few or none. This is indeed cause for concern. But it could also mean that more buyers will be able to come to market.

For all your real estate questions and concerns write to andrew@batesrealestategroup.com where we strive to help you achieve your real estate goals.










































































 

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It's Foreclosure Time

“An economist is an expert who will know tomorrow why the things he predicted yesterday didn’t happen today”.
Laurence J. Peter

Experts advise when buying foreclosures, one should buy low and sell high. Now is the low, the high is just around the corner. Interest rates are at an all time low so now is an excellent time to consider acquiring a foreclosure property. Below are some things to think about.
•Know before you buy. Know the market before you buy.Free information and guidance is available online at foresclosure sites and the National Association of Realtors site.
•Open your eyes to the opportunities that surround you. Even cities with high foreclosure rates have motivated sellers in sought after neighborhoods — where well-priced homes resell quickly. Consult with your favorite Realtor®.
•Make sure you know the current prices for comparable properties in the area. With markets in flux, your Realtor® can provide a CMA.
•Don’t be afraid to ask for a discount. To figure your offering price don’t forget to deduct the costs of necessary repairs and rehab. If you’re buying a property with plans to flip it, deduct from your offering price the cost of holding and selling the property until you find a buyer - remember to pencil in your profit!
•Don’t be derailed by marketing come-ons, gimmicks, and “insider secrets”. If it sounds too good to be true, it is.
•Beware of home auctions. Competitive bidding drives up prices. Instead of buying a house at discount, you could end up paying full market price or more when factoring in auction commissions and fees.
•Consider FHA as a low-cost, safe financing alternative. With new higher loan limits, interest rates at 35 year lows, and home buyer tax incentives, this is an excellent opportunity for you to buy low.

What's A BPO

To determine the probable selling price of a property, a realtor will perform a BPO. The selling prices of similar, distressed and bank owned properties are compared. A radius of 1/4 miles is typical, its not unusual to go even farther out to find a comparable property. Once the comparable is found an appropriate sales price can be set. You sellers should keep this in mind in your conversation with his or her realtor, for only then can a realistic price be set. Only than can you expect to have his property sold in a reasonable amount of time. Time and money will be saved and the highest and best price will be achieved.

Click on http://batesrealestategroup.com/ for foreclosures listings. You can also write me at Andrew@realtorintouch with your real estate related questions and concerns.